Looking for an affordable housing property in India? Great! Before embarking on your buying journey, take heed to what the union budget 2023-24 highlights about real estate.
The latest union budget 2023-24 has a few important updates on the real estate industry that a home-buying aspirant should know.
In this blog, we can take a closer look at the key highlights of the union budget 2023 and the consequences on the real estate properties in India.
Let’s get started.
- For the profit you earned on selling an asset, you need not pay taxes. Instead, you can use the money to buy a residential property. Tax on capital gains can be ignored by investing proceeds of such gains in the residential properties at Rs.10 crores as per 54 and 54F sections
- At present, the calculations of joint property development consider only the value of the property. The Finance Minister during the budget 2023 announcement declared that there is a proposal to change the current method. With that, from henceforward, the tax calculation also considers the money received as payment through cheque and other methods
- Interests paid on borrowed money for purchasing a new or renovating an existing property were taxable. After the rollout of budget 2023, the interest can be claimed as a tax deduction. When you sell the property, the interest is included as part of the purchasing/renovating cost to reduce the tax induction from property sales
- Currently, the tax rebate is to individuals with income up to Rs.5 lakh. In the latest budget 2023 updates, the rebate limit is increased up to Rs.7 lakh with the new tax regime
- The personal income tax regime for middle-class individuals with six income slabs starting from Rs.2.5 lakh was announced in the year 2020. In the 2023 budget announcements, this is updated as below,
|Income Slab||Tax Exemption rate|
|Above Rs.15 Lakh||30%|
Other Important Budget Highlights for Home Buyers
- In the budget speech, the Finance Minister has declared that 80 lakh home projects must be closed under the PMAY scheme within a year, i.e., within December 2024. Therefore, to speed up the construction works Rs. 48,000 crores is reserved
- The Credit-Linked Subsidy Scheme (CLSS) will be continuing till December 2024
- The capital investment outlay increases by 33%, which is to Rs.10 Lakh crores, comes to around three times the outlay in 2019-20, which is, 3.3% of GDP
It’s true that the budget 2023 update has not uncovered the most-expected information about real estate, but still, every update has an indirect sync with real estate property purchases.
66% rise in affordable housing projects, tax deduction policies on capital gains and tax percentage revisions are the significant highlights of the union budget 2023-24 on real estate.
Analysing the 2023 union budget gives a positive outlook making affordable housing projects along with favourable tax policies easily attainable by home buyers. These initiatives taken by the Indian Government turn the spotlight to fulfilling your dream home projects!