What Budget 2021 offered to Real Estate Sector

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On Monday the union budget 2021 was presented & was disappointing for the real estate sector as the budget failed to address the expectations that the real estate sector had after the impact of COVID-19.

The experts coated the budget was disappointing for the real estate sector, as it was expecting a boost from the upcoming budget by some relief in personal income tax or input credit under GST for the projects.

The Budget 2021 only offered a little as it only contained an extension of incentives for interest payment on affordable homes by another year, tax incentives for notified affordable rental housing, and some tax relief for dividends received from REITS.

  • The budget proposed to extend the Rs 1.5 lakh benefit on the interest paid on affordable housing loans by one year to March 21, 2022.
  • The budget also provided tax exemption for affordable rental housing projects.
  • Suitable amendments will be made in relevant legislations so that Debt Financing of InVITs and REITs by Foreign Portfolio Investors can be enabled. This will further ease access of finance to InVITS and REITs, thus augmenting funds for infrastructure and real estate sectors.

Finance Minister Nirmala Sitharaman said, “The government is committed to promoting affordable housing for migrant workers. For this, I propose to allow tax exemption for notified Affordable Rental Housing Projects”.

However, there were no specific announcements to boost the failing real estate sector. The sector needs some attention so that it would contribute to the GDP & more importantly, for being a necessary input in all economic activities, Said MD, Colliers International India, Sankey Prasad.


Epoch India Advisors is a leading real estate consultancy & advisory firm offering highly curated services related to corporate leasing solutions, project marketing, real estate event & digital strategy.

 

 

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