Budget 2021: Government Approves Affordable Housing Projects Till March 2022

Budget 2021: The Finance Minister announced the extension of the eligibility period for claiming tax holiday for affordable housing project by one more year to March 31, 2022.

Budget 2021: Government Approves Affordable Housing Projects Till March 2022

Budget 2021: Finance Minister Nirmala Sitharaman presented the budget on February 1, 2021

Budget 2021: Finance Minister Nirmala Sitharaman, while presenting Budget 2021 in the Lok Sabha, ordered to increase the supply of affordable house, and announced the extension of the eligibility period for claiming tax holiday for affordable housing project by one more year to March 31, 2022. Additionally, to promote the supply of affordable rental housing for the migrant workers, it was also proposed to allow a new tax exemption for the notified Affordable Rental Housing Projects. The government announced an additional interest deduction of Rs 1.5 lakhs for the acquisition of specified residential house property by individuals for loans obtained till March 31, 2022.

The government also announced exemption from withholding tax on dividend credited or distributed to REITs and an establishment of special purpose vehicle to monetise land owned by the government. Along with this, foreign portfolio investors will now be permitted to provide debt funding to REITs.