Budget: Jaitley’s major push for affordable housing

New Delhi, Feb 29 (IANS) The government on Monday proposed 100 percent deduction for profits to housing projects building homes up to 30 sq. metres in four metropolitan cities and 60 sq. metres in other cities.

This was announced by Finance Minister Arun Jaitley while presenting the union budget for 2016-17 in the Lok Sabha.

“In order to fuel activity in the housing sector, I propose to give 100 percent deduction for profits to an undertaking from a housing project for flats up to 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019, and is completed within three years of the approval,” said Jaitley.

“Minimum Alternate Tax (MAT) will, however, apply to these undertakings,” he added.

There was also something on offer for first time home buyers in the budget.

“For the ‘first home buyers’, I propose to give deduction for additional interest of Rs.50,000 per annum for loans up to Rs.35 lakh sanctioned during the next financial year, provided the value of the house does not exceed Rs.50 lakh,” he said.

“Another proposal to stimulate housing activity is to facilitate investments in Real Estate Investment Trusts. I propose that any distribution made out of income of SPV (special purpose vehicle) to the REITs (Real Estate Investment Trust) and INVITs (Infrastructure Investment Trusts) having specified shareholding will not be subjected to Dividend Distribution Tax.”

Jaitley said: “It is proposed to exempt service tax on construction of affordable houses up to 60 square metres under any scheme of the central or state government including PPP (public-private partnership) schemes.”

The finance minister also proposed to extend excise duty exemption presently available to concrete mix manufactured at site for use in construction work to ready-mixed concrete.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here