The Centre will allocate Rs 18,000 crore more to the Pradhan Mantri Awas Yojana (PMAY) – Urban for building houses for middle income and economically weaker sections of the country.
The amount of Rs 18,000 crore will be provided over the Budget Estimates for 2020-21 through additional allocation and extra budgetary resources.
The allocation is over and above Rs 8,000 crore already this year.
As per the government, the decision will help 12 lakh houses to be launched and 18 lakh houses to be completed and create 78 lakh additional jobs.
In another major to boost the real estate sector, Finance Minister Nirmala Sitharaman announced an increase in the permitted differential between the circle rate and the agreement value of housing units to 20 per cent from the current mandated limit of 10 per cent till June 30.
The increase in differential will be applicable in residential units of value up to Rs 2 crore. It will help in reducing the tax liability as the tax will be applicable on lower value of residential units.
Section 43CA of the IT Act restricts differential between circle rate and the agreement value at 10 per cent. However, prices may actually be lower than that, and the restriction curbs sale of housing units.
Sitharaman said that the decision has been taken to boost sales at a time when demand is low and inventories have piled up.