Income Tax Relief For Developers, Home-Buyers To Boost Real Estate Demand
Finance Minister Nirmala Sitharaman has announced income tax relief for developers and home-buyers in order to boost the demand for residential real estate in the country, as part of Atmanirbhar 3.0 stimulus measures to push economic growth. The first-time buyers of houses costing up to Rs 2 crore will get income tax relief of up to 20 per cent and this will be available till June 30, 2021. "This will incentivize people to buy homes and bring down the excess inventory," Nirmala Sitharaman said.
The Finance Minister announced doubling the differential between circle rate (stamp duty value) and agreement value (purchase value) for primary sale of residential units of up to Rs 2 crore, from 10 per cent to 20 per cent. "The government has decided to increase the differential from 10 per cent to 20 per cent under Section 43(CA) of the IT Act till June 30, 2021," the finance minister said, adding that necessary amendment to the income tax act will be made in due course. As a result, buyers of these units will get tax relief of up to 20 per cent under Section 56(2)(x) of IT Act, she added.
The tax relief will help the middle class which wants to buy when the housing sector is sitting on inventories, the finance minister emphasized.
Bank guarantees for construction activity, which constituted 10-15 per cent of the total project cost, will now be reduced to merely 3 per cent of the overall project value. This will ensure availability of additional liquidity to companies and reduce the burden on contractors.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
