Real Estate is considered the nation’s most crucial economic engine. This is the major reason that Finance Minister Nirmala Sitharaman welcomed the investment in Budget 2021. Two incentives that are provided to the real estate sector are basically for the benefits of taxes for the investment of affordable housing and private investment format such as REAL ESTATE INVESTMENT TRUSTS OR INFRASTRUCTURE INVESTMENT TRUSTS (REITs OR 11711. Moreover, it includes two tax exemption benefits as well as the deduction of interest on loans for affordable housing. Apart from these, for increasing the value of overall capital appreciation of nearby projects, Finance Minister also announced some supportive measures. This initiative proves to be boosted in the real estate industry this year.
IMPACTS OF BUDGET 2021 ON REAL ESTATE SECTOR:
AFFORDABLE HOUSING: The government offered an additional tax deduction on Income tax of up to 1.5 lakhs for home loans in 2019 which is now extended till 31 March 2022. The main purpose of this incentive is to boost up growth and consumption. Along with this, a one-year extension holiday was proposed to ensure the migrant people for the projects of the affordable rental houses.
REIT(REAL ESTATE INVESTMENT TRUSTS): The government scrapped the Dividend Distribution Tax in the previous budget for the purpose of boosting investment. Furthermore, according to the Finance Minister that the liability for advanced tax should only be determined after the declaration of dividend on dividend income. Because shareholders are unable to determine the advance tax accurately.
INFRASTRUCTURE BOOST: Metros and RRT would be installed in 27 cities with two new techniques of “MetroLite” and -MetroNeo”. Debt funding is required in Infrastructure for the long term and along with this, a professionally managed Development Financial Institution is also required to operate enabler and catalyst for infrastructure funding.
SOCIAL SECURITIES FOR CONSTRUCTION WORKERS: Finance Minister proposed to launch a portal for the health and other basic facilities of unorganized workers by collecting all the relevant information about them.
So, the aforementioned guidelines are passed by government that comes under Budget 2021. To avail the benefit of Budget 2021, search for the Bulls Estate at Mohali, who are trust worthy and will let you inform every aspect of Budget 2021 while buying any property.