Finance Minister Nirmala Sitharaman on Monday presented the Union Budget 2021-22. Real Estate being a primary business in Navi Mumbai, developers from the city have welcomed the extension of IT exemption in affordable housing for a year. The decision will boost the real estate section and this will be beneficial for both buyers and developers.
During her speech, Sitharaman had announced the extension of the tax holiday on affordable housing projects for one more year. Affordable housing projects can avail the tax exemption benefits until March 31, 2022.
Since Navi Mumbai is the new destination for affordable housing, there will be a boost for a section in the city. Even, CIDCO which is a state government undertaking will be constructing around 90,000 homes. In the years to come, there will be a big opportunity for homebuyers to strike a deal. Developers in the city feel that the move to extend the tax holiday available for the purchase of affordable houses will further strengthen the confidence of homebuyers.
Haresh Chheda, president of Builders Association for Navi Mumbai said that the decision will help developers to sell their units at discount as well. "The amount to be saved by not paying the tax can pass on to homebuyers,” he said.
Dronagiri, Taloja, Matheran-Road in Panvel, Khopoli, Pen, and the NAINA area have a huge number of affordable houses. “In and around Navi Mumbai, around 25,000 new affordable houses will be available and buyers will have a good opportunity to buy a home,” said Chheda.
“The move will prompt more demand, especially among first-time buyers. The simultaneous extension of the tax holiday on affordable housing projects for developers by another year will encourage more the project launches in this segment as developers will get additional time,” said Sijo Sunny, Director, National Builders, adding that combined with the incentives already being offered by the State government, the real-estate sector’s overall sentiment will get a positive boost.
Manohar Shroff, senior vice president of Navi Mumbai unit of Maharashtra Chambers of Housing and Industry (MCHI) agrees that the decision will boost the real estate sector. “The budget is overall good and the tax holiday for affordable housing will be a boon for Navi Mumbai,” he said.
In addition, in the budget there is a provision of interest deduction of up to ₹3.5 lakh under the 'Housing for All'. “For both ends - buyers and developers - there is positive news,” said Chheda.
