Tax relief for homebuyers to boost sale of housing units

This measure will reduce harships faced by both home-buyers and developers, said Sitharaman

To boost residential real estate sector, she said the differential has now been increased to 20 per cent for a period up to June 30, 2021, for only primary sale of residential units of value up to Rs 2 crore. Credit: PTI Photo

Finance Minister Nirmala Sitharaman on Thursday announced relaxations in income tax rules to allow the sale of primary residential units of up to Rs 2 crore value below the circle rate.

Till now, only 10 per cent difference between the circle rate and the agreement value was allowed.

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To boost residential real estate sector, she said the differential has now been increased to 20 per cent for a period up to June 30, 2021, for only primary sale of residential units of value up to Rs 2 crore.

"This measure will reduce harships faced by both home-buyers and developers and help in clearing the unsold inventory," she said.