Cheap houses are still cheap, but real estate doesn't have a real boost
The stagnant real estate market has little to encourage, except the extension of taxes on affordable housing.
The additional deduction of up to Rs 1.5 lakh for interest paid on loans taken for the purchase of affordable housing has been extended until March 31, 2021.
Currently, while taxing capital gains, commercial profits and other sources with respect to real estate transactions, if the value of the consideration is less than the circular rate by more than 5%, the difference is counted as income, both in the hands of buyer and seller. It is proposed to increase this limit to 10%.
The tax exemption on profits earned by builders who build affordable houses is also proposed to extend for one year.