Budget for Real Estate – 2024 Budget
2024 Budget for Real Estate
The 2024 budget has introduced several key measures and reforms aimed at boosting the real estate sector in India. These changes are expected to drive growth, improve affordability, and streamline processes for homebuyers and developers alike. In this comprehensive guide, we explore the anticipated impacts of the 2024 budget on the real estate market.
Table of Contents
- 1. Key Expectations from the 2024 Budget
- 2. Tax Reforms and Benefits
- 3. Affordable Housing Initiatives
- 4. Ease of Doing Business
- 5. Infrastructure Development
- 6. Reviving Key Schemes
- 7. FAQ
1. Key Expectations from the 2024 Budget
The real estate sector had high hopes from the 2024 budget, looking for reforms that would enhance growth and stability. Key expectations included tax benefits for homebuyers, industry status for real estate, and improved funding for infrastructure projects.
2. Tax Reforms and Benefits
One of the most anticipated aspects of the budget was the increase in tax deductions for homebuyers. The government has raised the deduction limit for interest payments on home loans from ₹2 lakh to ₹5 lakh, which is expected to boost housing demand significantly. Additionally, there are proposed tax exemptions on rental income to encourage more investments in the residential real estate sector.
3. Affordable Housing Initiatives
The budget also focused on expanding the definition of affordable housing. Homes up to ₹75 lakhs with larger carpet areas now qualify for benefits, which will help more people access affordable housing. The revival of the Credit-Linked Subsidy Scheme (CLSS) under PMAY is another key initiative aimed at benefiting economically weaker sections and low-income groups.
4. Ease of Doing Business
To streamline operations and reduce delays, the budget introduced a single-window clearance system for project approvals. This is expected to significantly enhance the ease of doing business for developers. The budget also included measures to simplify regulations and address liquidity concerns in the sector.
5. Infrastructure Development
Increased allocations for urban infrastructure development are a highlight of the budget. Lower stamp duty rates, especially for first-time homebuyers, are expected to stimulate growth. Continued investments in infrastructure will make city centers more accessible and support mid-range housing projects.
6. Reviving Key Schemes
The budget aims to revive crucial schemes like the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, which has been instrumental in reviving stalled projects. Additionally, a 100% tax holiday for affordable housing developers under Section 80-IBA has been reintroduced to boost affordable housing development.
7. FAQ
1. What tax benefits are available for homebuyers under the 2024 budget?
The deduction limit for interest payments on home loans has been increased from ₹2 lakh to ₹5 lakh, providing significant tax relief to homebuyers.
2. How does the 2024 budget support affordable housing?
The budget has expanded the definition of affordable housing to include homes up to ₹75 lakhs with larger carpet areas. It also revived the Credit-Linked Subsidy Scheme (CLSS) under PMAY.
3. What measures have been introduced to improve the ease of doing business for developers?
The budget introduced a single-window clearance system for project approvals and simplified regulations to reduce delays and enhance the ease of doing business in the real estate sector.
4. What infrastructure developments are included in the 2024 budget?
The budget has allocated increased funds for urban infrastructure development and introduced lower stamp duty rates, especially for first-time homebuyers.
5. How does the budget address stalled real estate projects?
The budget aims to enhance funding for the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund and reintroduce a 100% tax holiday for affordable housing developers under Section 80-IBA.
