7 Real Estate Area Positively Affected By 2021 Union Budget

17 Feb 2021

This blog is important for every real estate aspirant and stakeholder. This blog educates on the Real Estate Area Affected By 2021 Union Budget

• What are those 7 areas which got affected positively
• What real estate won in Budget 2021
• Impact on REIT and LED flashlights
• Stressed resolution on properties

Here is what the real estate earned by Finance Minister Nirmala Sitharaman in the Union Budget 2021 presented on February 1.

Rs 54,581 crore was given to the Ministry of Housing and Urban Affairs in the 2021 Budget.

This is what the Union Budget 2021 won real estate:

• INCREASE IN THE SAFE HARBOR CAP FOR RESIDENTIAL UNIT PRIMARY SALES

It is proposed to raise the safe harbour cap from 10% to 20% for the designated primary sales of residential units to attract home buyers and real estate developers.

• AFFORDABLE HOUSING

The government offered an additional interest deduction of Rs 1.5 lakh for loans taken for the purchase of an affordable house in the July 2019 budget.

FM proposed extending the eligibility for this deduction by one more year to March 31, 2022. Accordingly, an additional deduction of Rs 1.5 lakh is available for loans taken up to 31 March 2022, for the purchase of affordable property.

Besides, FM indicated that affordable housing projects could benefit from a tax holiday for another year until March 31, 2022, to sustain the supply of affordable houses.

Sitharaman suggested allowing tax exemptions for recorded Affordable Rental Housing Projects to encourage the availability of affordable rental housing for migrant workers.

• REITs

The regulatory amendment is necessary for managing the increasing external debt funding of invites and REITs.This will also foster access to financing from InVITS and REITs, thus increasing funding for the infrastructure and real estate sectors.

• THE INFRASTRUCTURE

A total of 702 km of the traditional metro is in service and an additional 1,016 km of metro and RRTS are being installed in 27 cities. Two new technologies, i.e. MetroLite and MetroNeo will be implemented in Tier-2 and Tier-3 cities to reduce the cost with the same level of experience, comfort, and protection as Tier-1 cities and suburbs.

• STRESSED RESOLUTION ON PROPERTIES

The high level of provisioning of their stressed assets by public sector banks calls for steps to clean up bank books. An Asset Restructuring Company and Asset Management Company will be formed to absorb and take over the existing stressed debt and then manage and dispose of the assets to Alternative Investment Funds and other potential buyers for the eventual realization of value.

The NCLT mechanism will be improved to ensure quicker settlement of cases, the e-Courts system will be enforced and new methods of debt resolution and the special MSME framework will be introduced.

• LED FLASHLIGHTS

Customs duty on inputs and parts of LED lights or fixtures, including LED lamps, has been increased from 7.5 to 10 per cent and on solar lanterns or solar lamps from 5 to 15 per cent.

• WORKERS IN CONSTRUCTION

In particular, to further broaden our efforts toward the unorganized migrant labour force, FM proposed to launch a portal that would collect relevant information, among others, on gigs, buildings, and construction workers. This will help devise schemes for migrant workers for health, accommodation, skills, insurance, credit, and food.

SUMMARY:

Real Estate Area Affected By 2021 Union Budget Rs 54,581 crore was given to the Ministry of Housing and Urban Affairs. It is proposed to raise the safe harbour cap from 10% to 20% for the designated primary sales of residential units. The government offered an additional interest deduction of Rs 1.5 lakh for loans taken for the purchase of an affordable house.

Sitharaman suggested allowing tax exemptions for recorded Affordable Rental Housing Projects to encourage the availability of affordable rental housing for migrant workers. A total of 702 km of the traditional metro is in service and an additional 1,016 km of metro and RRTS are being installed in 27 cities.

Customs duty on inputs and parts of LED lights or fixtures, including LED lamps, has been increased from 7.5 to 10 per cent. FM proposed to launch a portal that would collect relevant information on gigs, buildings, and construction workers.

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