Benefit on purchase of affordable house extended by one more year

D uring the Budget presentation today, the time limit to avail benefits on purchase of available housing was extended by one more year to 31 March 2022. The deduction benefit of Rs 1.5 lakh will now be available for the purchase of affordable houses for one more year.
Over the past few years, the real estate in India has had to deal with several large-scale policy changes – demonetization, GST, and the RERA Act – that have impacted its growth.
The sector was only beginning to bounce back from the impact when the pandemic hit, completely disrupting demand and supply value chains.
Over past Budgets, the government has given special attention to the real estate sector given the multiplier effect it can have on the economy.
With the government’s push for Housing for All by 2022 and the Pradhan Mantri Awas Yojana, the affordable housing segment dominated 2020, accounting for 50% new real estate launches.
Incentivizing such developers, during such times, helps the government boost demand. Affordable homes also accounted for almost half of the overall sales in Q3 2020.