Finance Minister Nirmala Sitharaman has announced the Union Budget for the financial year 2020-21. There is emphasis on 'Housing for all' and 'affordable housing' to give a boost to the real estate industry.
1. Tax exemption for notified affordable rental housing projects under the ARHC scheme.
This will essure enough supply of affordable housing options to migrant workers, students, urban poor, industrial workers etc. As per the recent updates on government policy regarding ARHC (Affordable Rental Housing Complexes Scheme, a part of Pradhan Mantri Awas Yojana (PMAY) to provide decent living to migrant workers and urban poor):
a. Projects under ARHC will be using for rental housing for minimum of 25 years.
b. 1-bedroom units will be up to 30 sq metres and 2-bedroom units will be up to 60 sq metres. Beds in dormitories will be up to 10 sq metre carpet area each.
c. As per the guidelines of ministry of housing - local authorities will decide what would be the rent in units in ARHC.
2. Extension of Rs. 1.5 lakhs benefit on interest paid in affordable housing loans till March 2022.
(Section 80 EEA)The Finance Minister has proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by one year to March 31, 2022. Now more people can avail this additional deduction per year if they get a loan sanctioned before March 2022. It's noteworthy that all in all, the home buyer gets to save Rs 3.5 lakhs. Because the homebuyers will also get a tax benefit of Rs 2 lakhs available under Section 24(B) of the Income Tax Act on interest on housing loan on both, self-occupied and rented properties.
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How will affordable housing get a boost post the announcement of Union Budget 2021?
Sathish Krishnan
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5 Year
2021-02-01T15:54:50+00:00 2025-04-30T19:24:17+00:00Comment
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