The Union Budget has given the real estate industry the much-needed ammunition to fight the recession period concerns with increased capital spending targets as well as the impetus to the income earners by providing enhanced disposable earnings at hand with the greater tax rebate.
The increased emphasis on digitalization, which will boost employment in the IT industry, will increase demand for commercial and residential properties nationwide.
Increasing the budget for the PM Awas Yojana by 66% to more than Rs 79,000 crores will help the country’s affordable housing market, which is regarded as the residential market’s core, flourish.
Here is a brief breakdown of the entire 2023 real estate budget:
The budget for the PMAY (Pradhan Mantri Awas Yojana) has increased by 66% to more than Rs 79,000 crores.
The finance minister suggested changing the rules for calculating capital in cases of joint property development to include the money received in checks or other forms of payment as consideration.
While interest expense on borrowed money used to buy or enhance a property can, under certain circumstances, be deducted from earnings, it can also be added to the cost of purchase or improvement at the time of transfer, lowering capital gains. It is suggested to state that the interest amount previously claimed as a deduction shall not be included in the purchase price or improvement.
Sitharaman suggested capping the exemption from capital gains on investments in residential property under sections 54 and 54F at Rs 10 crore in order to properly target tax breaks and exemptions. Limiting the exemption from income taxes from the revenues of extremely valuable insurance policies is another proposal with a similar goal.
