Every year before the union budget is presented, prospective home buyers and real estate players anticipate reforms and rebate. This year, the expectations were exceedingly high for to-be homeowners who were awaiting some respite after a pandemic-struck 2020. With India’s budget 2021 on the floor, a slew of measures graced home buyers and the realty sector.
From income tax relief to affordable housing initiatives, here are the things that will impact your goal of renting or buying a house in 2021:
If you are looking to purchase a house in 2021, you will be able to avail an extra income tax deduction of Rs 1.5 lakhs. In the budget, the government has extended the provision by another year to 2021-2022. Your property investment will bear you a yearly tax-deductible investment of Rs 3.5 lakhs, owing to this amendment.
The deduction announced first in the July 2019 budget, is applicable on home finance for affordable housing. Properties worth less than Rs 45 lakh belong to the affordable housing category.
A surge in demand and loan benefits
Realty consultants and real estate developers suggest that tax exemption (up to Rs. 3.5 lakhs) on affordable housing projects will significantly boost demand for residential dwelling units in a post-pandemic market.
Tax holiday period and affordable housing prices
The central government has provisioned a tax holiday, i.e., tax reduction or elimination by another year, for affordable housing realty developers in budget 2021. For homebuyers, this is good news too, as the builders will now be able to finish their projects faster.
Custom duty on iron and steel
If you wonder how relaxed custom duty on metals like steel and iron aid your home purchase, think again. The lowered duty will extensively trim down the expenditure developers may incur on imported material used in construction. With real estate builders benefitting from the move, the home prices will also reduce quickly.
To sum up
The tax deduction, loan benefits, and affordable housing incentives are a substantial relief for the real-estate sector, which was significantly impacted by the pandemic. The advantages are also aplenty for homebuyers who can purchase their dream home without drilling a hole in their pocket or denting their savings.
So, if you are scouting the market for a housing loan provider that offers one of the best home loan interest rates, your search ends at Tata Capital. Avail the best home loan offerings at flexible repayment terms and minimal documentation from us.
Further, once you have a clear-cut idea of the total home buying expenditures you can afford, use an online home loan EMI calculator to navigate your future monthly instalments with us.
Connect with Tata Capital today, and let your transition to a new home be a smooth one.