In the Union Budget 2017, Finance Minister Arun Jaitley reserved his best for the real estate sector, which witnessed a slump, post demonetisation. Affordable housing developers will be eligible for Government’s incentives, tax benefits and institutional funding.
Giving affordable housing an infrastructure status, the Finance Minister gave aam aadmi and real estate developers enough reasons to cheer.
Experts said this will open the door to foreign funds at cheaper cost to developers and attract more investments in the sector.
Affordable housing developers will also be eligible for government’s incentives, tax benefits and institutional funding
- Proposal to create 1 crore houses for the poor by 2019
- National Housing Bank will refinance housing loans up to R20,000 crore
- Pradhan Mantri Awas Yojana, which was launched in 2015 to achieve Government’s mission of ‘Housing for All by 2022’, will get R23,000 crore. The scheme will be extended to 600 districts
- Under affordable housing, the carpet area of 30-60 square meters will now be applicable as against built-up area of 30-60 square meters-- an area increase of 20 per cent
- Capital Gains Tax holding period for immovable property reduced from three years to two years
- SOPs to affordable housing extended from three years to five years
Source: India Today