Budget 2020: FM Sitharaman's sops to boost affordable housing projects

Rs 1.5 lakh benefit on interest paid on affordable housing loans extended by a year; Tax holiday for developers; industry hails initiatives

The incentives announced by the finance minister would boost affordable housing projects in the country, say developers, finance companies and consultants.

Finance Minister Nirmala Sitharaman in the Budget 2020 proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by a year to March 2021.

Tax holiday for affordable housing developers was also extended by a year.

Affordable housing projects are given a deduction under Section 80IBA of the Income Tax Act. To promote Housing for All by 2022, the sunset date for taking approval was extended till March 31, 2020, in the Interim Budget 2019.

Ravindra Sudhalkar, ED