 "Measures for promoting affordable housing announced in budget")
The Finance Minister Arun Jaitley has proposed to give 100 percent deduction for profits to an undertaking from a housing project for flats upto 30 sq m in four metro cities and 60 sq m in other cities, approved during June 2016 to March 2019, and is completed within three years of the approval. Minimum Alternate Tax will however apply to these undertakings.
Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax.
For the ‘first - home buyers’, Jaitley has proposed to give deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned during the next financial year, provided the value of the house does not exceed Rs 50 lakh.
The budget has also proposed to exempt service tax on construction of affordable houses up to 60 sq m under any scheme of the central or state government including PPP Schemes. Alongside, Jaitley further proposed to extend excise duty exemption, presently available to concrete mix manufactured at site for use in construction work at such site to ready mix concrete.
Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax.
For the ‘first - home buyers’, Jaitley has proposed to give deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned during the next financial year, provided the value of the house does not exceed Rs 50 lakh.
The budget has also proposed to exempt service tax on construction of affordable houses up to 60 sq m under any scheme of the central or state government including PPP Schemes. Alongside, Jaitley further proposed to extend excise duty exemption, presently available to concrete mix manufactured at site for use in construction work at such site to ready mix concrete.