Real Estate Had Developed Many Expectations From Budget2021 | Tripura Constructions
Expectations versus reality is a race that will continue throughout the life. We can also say that :-
Reality – Expectations = Happiness Real Estate had developed many expectations from Budget 2021. Though some were not fulfilled, Real Estate got a small share from Budget 2021.
1. A Chunk for Real Estate Bouncing back after the pandemic punch, the real estate sector needed a greater push to reduce the impact of the pandemic and for the revival of its fortune. Though there was a list of expectations from Budget 2021, Real Estate did get a chunk of the budget as mentioned below:
1.1. Priority to Affordable Housing In the previous budget i.e. 2019 budget, the government had provided an additional deduction of interest amounting to Rs. 1.5 lakh for loan taken to purchase an affordable house. The Finance Minister said that this government sees Housing for All and Affordable Housing as priority areas. She proposed to extend the eligibility of this deduction by one more year, to 31st March, 2022. Budget 2021 has granted Rs. 54,581 crore to Ministry of Housing and Urban Affairs. BUDGET 2021 – A CHUNK FOR REAL ESTATE
1.2. Increase in Safe Harbour Limit The Minister proposed to increase the safe harbour limit from 10% to 20% for the specified primary sale of residential units. This move is to provide incentives to home buyers and real estate developers.
1.3. Support to Real Estate Investment Trusts Section 194 of the Income Tax Act , governs the provisions for deduction of TDS on payment of dividend. TDS stands for Tax Deducted at Source. Budget 2021 exempted dividends from real estate investments trusts or REITs. Suitable arrangements will be made for debt financing of InvITs and REITs by foreign portfolio investors in the relevant legislations. This will ease the access of finance. Budget 2021 exempted dividends from Real Estate Investment Trusts (REITs).
1.4. Infrastructure This is another sector that got a slice of Budget 2021. As per the budget, two new technologies i.e. ‘Metrolite’ and ‘MetroNeo’ will be deployed to provide metro rail systems at much lesser cost with same experience, convenience and safety in Tier 2 cities and peripherals of Tier 1 cities. The Finance Minister provided a sum of Rs. 20000 crore to capitalize this institution. Though this chunk of the budget is not directly provided to real estate, it will definitely enhance the real estate sector.
1.5. Succor for Migrant Workers As per Budget 2021, social security benefits will be extended to construction workers and minimum wages to apply for all categories. Apart from this, a portal will be launched that will collect the relevant information about migrant workers. This will be helpful to the government to formulate various schemes for these workers.
written by
Pallavi krishna