Nirmala Sitharaman s Budget Like Never Before Obliges Urban Population While Satisfying The Rural
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Finance Minister Nirmala Sitharaman s third budget in two years was one that registered unprecedented fiscal deficit, an intent that is definitely encouraging for an economy that has been beaten to the ground by a once in a century crisis . Being compared to its 30-year-old counterpart, when the then Finance Minister Manmohan Singh opened the Indian economy for liberalisation, Sitharaman s budget will be remembered for uplifting living standards of the populace in the face of a battered fiscal.
Budget 2021 s tone was clear: reviving the severely hit urban population while making sure that the rural folk is not left wanting.
Union Budget 2021 | FM Sitharaman extends affordable housing benefit until March 2022
In order to promote supply of Affordable Rental Housing for the migrant workers, it is also proposed to allow a new tax exemption for the notified Affordable Rental Housing Projects
Finance minister Nirmala Sitharaman on February 1 extended the affordable housing benefit by one more year until March 2022. The FM also announced tax exemption for rental housing projects in her Budget speech.
The income tax rebate of Rs 1.5 lakh for affordable home loans will continue until March 2022, she said.
In order to promote supply of Affordable Rental Housing for the migrant workers, it is also proposed to allow a new tax exemption for the notified Affordable Rental Housing Projects, she said.
Updated Feb 01, 2021 | 18:02 IST
The Finance Minister announced that affordable housing projects can avail a tax holiday for one more year, till March 31, 2022. Finance Minister Nirmala Sitharaman (File photo) | Photo Credit: BCCL
Key Highlights
Additional interest deduction of Rs 1.5 lakh for loans taken to purchase an affordable house will now be eligible for loans taken up to March 31, 2022
The FM also announced tax exemption for notified Affordable Rental Housing Projects
Like every year, the real estate sector had put forth a list of recommendations and demands from the central government ahead of the Union Budget 2021. While none of the tax exemptions or relief came in from the sector s budget wish list, Finance Minister Nirmala Sitharaman announced the extension of tax holidays for the affordable housing segment.
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Rukmini Rao | February 1, 2021 | Updated 22:42 IST
Representative Image
With the government s aim to provide affordable housing to the urban poor by 2022, Finance Minister Nirmala Sitharaman in this year s Budget has extended the eligibility for availing an additional deduction of interest. The current exemption of additional interest of up to Rs 1.5 lakh for loan taken to purchase an affordable house has been extended by one more year. This means the additional deduction of Rs 1.5 lakh will also be applicable to all housing loans taken up till March 31, 2022, for the purchase of an affordable house. Also in order to improve the supply of affordable houses, realty players can avail the tax holiday for