Budget 2023: Tax relief to encourage homebuyers to invest more, says Shapoorji Pallonji Real Estate

New Delhi, 1st Feb: Union Finance Minister Nirmala Sitharaman on Wednesday announced the union budget 2023-24.

Commenting on the budget’s allocation to housing market, Nirav Dalal, Executive Vice President- Business Development and Chief Investment Officer, Shapoorji Pallonji Real Estate said, “We welcome the measures announced by Finance Minister Nirmala Sitharaman in the Union Budget 2023–24, which indirectly aims to boost the real estate sector’s growth while also providing relief to consumers.”

The proposed increase in the income tax exemption limit to Rs 7 lakh will help boost real estate investment. This tax break will encourage homebuyers to invest more while simultaneously increasing revenue.

Meeting the long-standing demand of the real estate sector, the cap deduction for capital gains on residential housing investment is set at INR 10 crore, which will undoubtedly benefit the real estate industry.

As one of the important measures to support the market, there has been a 66% increase in the allocation to 79,000 crores in the Affordable Housing Fund (PMAY).

The budget also has an emphasis on developing smart cities. The budget has allocated the Urban Infrastructure Development Fund (UIDF), which will be managed by the National Housing Bank and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.

The infrastructural development in these untapped markets will help the development of real estate here.