FM Nirmala Sitharaman Announces Income Tax Cuts To Boost Residential Real Estate

Relaxations have been announced in the income tax rules by Union Finance Minister Nirmala Sitharaman to facilitate the sale of primary residential units of up to Rs 2 crore value below the circle rate, Times of India reports.

So far, a difference of only 10 per cent between the circle rate and agreement value was permitted. However, the differential has now been increased to 20 per cent for primary sale of residential units up to Rs 2 crore in a bid to shoot up the demand for residential real estate sector. This provision will be valid until June 30, 2021.

“This measure will reduce hardships faced by both home-buyers and developers and help in clearing the unsold inventory,” Sitharaman was quoted by the TOI.

The official PIB release notes that the slowdown in the economy has resulted in a decline in prices of residential units. It states that there is a belief that these measures will aid in clearing unsold inventory and cutting down the difficulties faced by home-buyers and developers.