The real estate sector has been waiting for the industry status for a long and received disappointment this time as well. However, Union Finance Minister Nirmala Sitharaman proposed some measures which will help the real estate industry as well as the building material industry. Apart from these, the FM also made some announcements related to the rental income and stamp duty as well.
PM Awas Yojana
FM Sitharaman also announced the continuation of the PM Awas Yojana. “Three crore additional houses under the PM AwasYojana in rural and urban areas in the country have been announced, for which the necessary allocations are being made,” said Sitharaman.
Further, she said that the scheme will be extended to urban buyers. “Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore. This will include the central assistance of Rs 2.2 lakh crore in the next 5 years. A provision of interest subsidy to facilitate loans at affordable rates is also envisaged,” she said.
Rental Income
Sitharaman said that enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place.
“It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head ‘profits and gains of business or profession’ and will be chargeable to tax under the head ‘income from house property’ only,” said Sitharaman.
TDS On Sale Of Immovable
FM Sitharaman proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property.
Rationalization Of Stamp Duty
People have been demanding the rationalisation of the stamp duty. Paying heed to the demands, FM Sitharaman said, “We will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes.”
Urban Land Related actions
The Finance Minister said that land records in urban areas will be digitized with GIS mapping. An IT-based system for property record administration, updating, and tax administration will be established. These will also facilitate improving the financial position of urban local bodies.
The Finance Minister also said that rental housing with dormitory-type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from anchor industries.
