- The 100% deduction for profits to an undertaking in housing project for flats up to 30 sq. metres in 4 metros and 60 sq. metres in other cities approved during June 2016 to March 2019 and completed in 3 years will encourage supply in the affordable housing segment. This is subject to Minimum Alternate Tax.
- The proposal that distribution made out of income of SPV to the REIT and Infrastructure Investment Trusts (INVITs) having specified shareholding will not be subjected to Dividend Distribution Tax (DDT), in respect of dividend distributed after the specified date, is a progressive step. This step is likely to promote REIT and attract new investments
- Another good step is the deduction for additional interests of Rs. 50,000 per annum for loans up to Rs. 35 lakhs sanctioned in 2016-17 to first time home buyers, where the cost of the house itself does not exceed Rs. 50 lakh. This is directly beneficial for both buyers and sellers and will perk up the market sentiments.
- The exemption from service tax on construction of affordable houses up to 60 sq. metres under any scheme of the Central or State Government including PPP Schemes is another step in the right direction.
- Exemption for rent paid goes up from Rs. 24,000 to Rs. 60,000 which will augur well for the rental segment of the housing sector.
- Furthermore, the excise duty exemption presently available to concrete mix manufactured at the site for use in construction work to ready-mix concrete is a welcome move for the industry.
- The Budget proposal to digitize land records is in the right direction which will render land records free from encumbrances.
- Upto 30 sqmeters in 4 metros
- Upto 60 sqmeters in other metros