New Delhi: In what will be a big boost for the real estate sector, it has been revealed that it may get the status of the infrastructure sector, that too before next year’s budget. The development has been reported by ZEE Business TV, citing several sources in the Union Finance Ministry. Also Read - FICCI Backs FM Sitharaman's Announcement on Housing and Real Estate, Says Steps Will Help Boost Slowing Economy
The issue, according to the report, is currently under discussion. If the proposal is approved, it will be implemented as early as the new year itself, the report says. Also Read - Major Relief to Stressed Real Estate Sector on The Anvil
The ZEE Business TV report further states that the development will lead to a positive multi-player impact. For example, under this scheme, registered taxpayers, who wish to purchase their ‘dream house,’ will be able to avail income tax benefits. In other words, a registered taxpayer, who wants to purchase a home, will get a tax rebate on his/her tax outgo of up to Rs 50,000. Also Read - NBFC Crisis Slows GDP Growth, Real Estate Worst Hit
As an example, the report said that those paying interest of Rs five lakh in a year will be able to save Rs 50,000 or 10% on their tax outgo.
The scheme will be applicable from the next financial years, i.e April 1, 2020 to March 31, 2021. New home buyers will be able to avail it for the first three years of their loan period, the ZEE Business TV report added.
The likely move will benefit the whole real estate sector due to non-increase in prices in the last four-five years.