Union Govt To Provide Income Tax Relief For First-Time Homebuyers

New Delhi: There’s good news for those who are planning to buy a house — they will get income tax relief.

The relief will only be for first-time homebuyers and will be available till June 30, 2021. The capping for relaxations is houses up to Rs 2 crore.

“Differential between circle rate and agreement value in real estate income tax is being increased from 10 per cent to 20 per cent from today till June 30, 2021, for primary sale of residential units up to Rs 2 crore. The income tax relief provides incentive to middle class to buy homes,” Union Finance minister Nirmala Sitharaman announced on Thursday.

“We expect clearance of inventories through this step,” she added.

Announcing Rs 18,000 crore additional outlay — over and above Rs 8,000 crore already provided this year — for the urban housing scheme to help complete pending real estate projects, Sitharaman said, “It would be provided over and above the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through additional allocation and extra budgetary resources.”