I-T relief to help developers liquidate unsold inventory, says FinMin

The Aatmanirbhar Bharat 3.0 package included income tax relief measures for real estate developers and homebuyers

The government’s move to allow primary or first sale of housing units costing up to Rs 2 crore at a price 20 per cent below the stamp duty circle rate would enable real estate developers to liquidate their unsold inventory and also benefit homebuyers, the finance ministry said on Friday.
 
The Aatmanirbhar Bharat 3.0 package announced by Finance Minister Nirmala Sitharaman on Thursday included income tax relief measures for real estate developers and homebuyers for primary purchase /sale of residential units of value of up to Rs 2 crore for the period from November 12, 2020 to June 30, 2021.

 
“In order to boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving benefit to the home buyers, it has been decided to further increase the safe harbour from 10 per cent to 20 per cent under section 43CA of the Act for the period from November 12, 2020-June 30, 2021, in respect of only primary sale of residential units of value up to Rs 2 crore,” the ministry said.