In a major boost for the real estate sector in India, as part of the central government Scheme, finance minister Nirmala Sitharaman on Thursday said that income tax relief will be given developers and home-buyers to increase the demand for residential real estate.
While announcing the 'Atmanirbhar Bharat' 3.0 package, the FM said that providing relief on sale of housing units "will reduce trooubles faced by both home-buyers and developers and help in clearing the unsold inventory". "For primary residential real estate sales, relief on the difference between circle rate and agreement value up to 20 percent as against 10 percent earlier. We expect clearance of inventories through this step," Sitharaman said.
With the government announcing a relief for home-buyers and builders, the bank guarantees for construction activity will be slashed to 3 percent of the overall project value which was 10 to 15 percent earlier. Hopefully, this move will reduce trouble on contractors and guarantee greater liquidity to companies.
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