Every year before the Budget, Finance Minister's kitty gets filled with suggestions and wishes from all the sectors. This year, the real estate sector -- which staged a recovery from 2020's downturn -- expected a range of measures from the upcoming Union Budget 2022-23.
Budget 2021 Highlights: Allowing foreign investors to invest in debt of REITs increases the sources of capital, and could help further lower cost of debt for the REIT.
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 2021-22: The Union budget should allocate more funds towards IT infra spends involving digitization of land records in urban areas
Budget 2021: The credit linked subsidy scheme (CLSS) should be extended by two years up to March 31, 2023, according to international property consultant- Knight Frank
Budget 2021: The government had offered Rs 25,000 crore stress asset fund for the uncompleted housing projects, increasing the differential from 10 to 20 per cent under Section 43(CA) till June 30, 2021
Budget 2021: Currently, the government offers interest subvention of one per cent for low-cost housing loans up to Rs 15 lakh, provided the housing cost does not exceed Rs 25 lakh
Budget 2021: The rate of TDS needs to be reduced is it will eventually provide real estate solutions to clients at economical rates, said Mr. Manas Mehrotra, Founder, 315Work Avenue, a coworking firm
The additional deduction of Rs 1.5 lakh, over and above the existing Rs 2 lakh, is being provided under the Section 80EEA.
India's real estate sector has been struggling against a severe liquidity crunch over the past three years following a series of debt defaults by high profile NBFCs.