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The Union Budget of 2019 has been presented. The sustained focus is laid on affordable housing by the Government, who aim to increase the demand. The government’s initiative of awarding the infrastructure status to the affordable housing segment has been successful in increasing the carpet area. Not only this, but it has also been able to redefine income definitions so that the supply in the market is boosted. Under Section 80-IBA of the Income Tax, 1961 to 30 March 2020, the 100 per cent tax holiday has already been extended.
The Government has taken the initiative of helping the buyers in the affordable and mid-housing segments by providing an additional exemption of Rs. 1.5 lakh (interest paid on housing loan) for properties up to Rs. 45 Lakh. Since the majority of homebuyers fall under the category of lower and mid-income segments, this particular tax benefit is supposed to boost demand substantially. Not only this, the first-time home buyers will also get these benefits from the interest subvention under the CLSS scheme and the announced tax benefits. The eligibility of mid-income housing segments will also improve on a higher scale.
For affordable housing and public infrastructure and to improve supply, land parcels of government and PSUs to be utilized has been proposed by the Budget 2019.
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