The union budget of 2019 looks extremely positive and promising for the housing sector. Finance Minister Nirmala Sitharaman has addressed the housing finance industry and real estate sector, both from the supply and the demand sides. The government has given great emphasis on affordable housing schemes under the Pradhan Mantri Awas Yojana (PMAY).
New Delhi Awas Yojna and other such housing schemes are all set to make the processes of buying homes easier. Under the New Delhi Awas yojana scheme, it offers 1/2/3/4 BHK homes at affordable prices to meet the target of “Housing for All” by 2022.
Let us take a look at the budget presented by our Finance minister, Nirmala Sitharaman:
Under the PM Awas Yojna (PMAY), a household with an annual income of up to Rs 18 lakh can avail Rs 2.3 lakh upfront subsidy for a home. Buyers are also eligible for income tax exemption on housing loans.
The centre government approved construction of nearly 1.4 lakh house under PMAY, taking the number of homes to be built under the scheme to over Rs. 85 lakh. With 1.5 crore houses completed during the last 5 years. There will be stupendous work during 2019-20 as part of Phase-II, where 1.95 crore houses to be provided.
Also, the government has approved an additional tax deduction of Rs 1.50 lakhs allowed on affordable house purchase over and above 2 lakhs up to March 2020. Under PMAY urban housing, 81.4 lakh houses sanctioned with a rupees of 4.83 lakh crore outlay. Forty-seven lakh houses under construction and 24 lakhs allotted to the beneficiaries.
To promote rental housing, the government has mooted a model rental agreement, whereas the builders who undertake such projects will continue to get 100% tax benefit on profits earned. NBFCs play an essential role in sustaining consumption demand as well as capital formation in the small and medium segments. So, the government has come out with a scheme to provide one time six months partial credit guarantee to public sector banks for the first loss up to 10%.
The government finally gave industry status to real estate sector. This plan will not only help get more people affordable housing but also help millions get employment.
