Finance Minister Nirmala Sitharaman, during a press conference on Thursday, announced an income tax relief for real estate buyers under the Aatmanirbhar 3.0 stimulus measures in a bid to boost economic growth. This is yet another stimulus package announced by Ms Sitharaman after the new employment generation scheme, 'Aatmanirbhar Bharat Rozgar Yojana'.
"Differential between circle rate and agreement value in real estate income tax is being increased from 10 per cent to 20 per cent from today till June 30, 2021, for primary sale of residential units up to Rs 2 crore. The income tax relief provides incentive to middle class to buy homes,"Ms Sitharaman said.
"We expect clearance of inventories through this step," she added.
Additionally, Rs 18,000 crore was also announced by the finance minister for the urban housing scheme to complete real estate projects.
"It would be provided over and above the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through additional allocation and extra budgetary resources," she said.
Furthermore, Ms Sitharaman said that the move would help start work in 12 lakh houses as well as complete 18 lakh houses. She added that 78 lakh new jobs would be created due to this and demand for steel and cement would also increase.
