Budget 2019: Tax relief to spur spending on affordable homes

BENGALURU: The big relief given to tax payers of income up to Rs 6.5 lakh will increase their spending on affordable housing, among the other things, according to Ram Walase, MD & CEO of VBHC Value Homes, a real estate firm.

Affordable housing projects registered up to 2020 would have tax exempted under 80 I B. This one year exemption would benefit new projects. Benefit of exemption of capital gains up to Rs 2 crore for investments in two houses would promote reinvestment in property, he said in his post-Budget reaction.

The exemption for two years from occupancy certificate for notional income tax on housing inventory would reduce pressure on the developers which are already under stress due to weak demand, Walase said.