Finance minister Sitharaman announces income tax relief for homebuyers

Union Finance Minister Nirmala Sitharaman on Thursday (November 12) announced income tax relief for developers and home-buyers in order to boost the demand for residential real estate in the country.

The first-time buyers of houses costing up to Rs 2 crore will get income tax relief of up to 20 per cent and this will be available till June 30, 2021. “This will incentivize people to buy homes and bring down the excess inventory,” Nirmala Sitharaman said.

The Finance Minister announced doubling the differential between circle rate (stamp duty value) and agreement value (purchase value) for primary sale of residential units of up to Rs 2 crore, from 10 per cent to 20 per cent.

With the announcement of increasing the differential between the circle rates and agreement rates to 20% from 10%, the affordable residential housing segment is expected to witness an uptick, and buyers can make an informed decision which will eventually help them to save their taxes.