The central government has announced to promote the housing sector before Diwali. Finance Minister Nirmala Sitharaman on Thursday announced concessions in the income tax rules, which would lead to the sale of residential properties priced below the circle rate of up to Rs 2 crore. Till now only 10 per cent difference in circle rate and agreement value was exempted. Sitharaman said that to boost the residential real estate sector, now this gap has been reduced to 20 percent by 30 June 2021. This is only for the primary sale of residential units with a value up to Rs 2 crore.
Buyers and developers will get relief
He informed that this step will reduce the difficulties faced by both home buyers and developers and will help in selling unsold inventory. Residential unit prices have come down due to economic slowdown. Currently, section 43CA of the IT Act limits the difference in circle rate and agreement value to 10 per cent. Now it is being increased to 20 percent. For this, necessary amendments will be made in the IT Act.
Announcing the plan, Sitharaman said that the economy is seeing improvement. The stock market is witnessing a steady rise. There has been a 5.1 per cent rise in credit growth of banks. RBI’s estimate of the economy is also positive for the third quarter. Talking about Atma Swarnibhar Bharat 1.0, he said that 28 states and union territories have come up with ‘One Nation, One Ration Card’ scheme. 26.2 lakh loan applications have been made under PM Swanidhi scheme.
Declaration was made for real estate under relief package in May also
In May, the government announced a relief package of 20 lakh crores. In this too, announcements were made to give relief to the real estate sector. It was also announced for the developers of the real estate sector to extend the registration deadline of projects to six months. This relief was given to all those projects registered under RERA whose deadline was ending on or after 25 March.