Aatmanirbhar 3.0: Key points about FM Sitharaman's announcement on income tax relief for homebuyers

FM Sitharaman said this measure will reduce harships faced by both home-buyers and developers and help in clearing the unsold inventory.

New Delhi: Ahead of Diwali, Finance Minister Nirmala Sitharaman on Thursday announced fresh stimulus worth Rs 2,65,080 crore to boost the coronavirus-hit economy.

Among the slew of announcements, Sitharaman announced relaxations in income tax rules to allow sale of primary residential units of up to Rs 2 crore value below the circle rate.

Till now, only 10 per cent difference between the circle rate and the agreement value was allowed. To boost residential real estate sector, the FM said the differential has now been increased to 20 per cent for period up to June 30, 2021 for only primary sale of residential units of value up to Rs 2 crore.

"This measure will reduce harships faced by both home-buyers and developers and help in clearing the unsold inventory," she said.

Addressing the press conference, the FM announced 12 new measures that can be called the next step in the series of stimulus announcements -- pronouncing it as Atmanirbhar Bharat 3.0. FM added that the overall cost of the packages announced till date is estimated at Rs 29,87,641, which is 15 percent of the country's GDP. 

Sitharaman on Thursday announced a Rs 18,000 crore additonal outlay for the urban housing scheme to help complete real estate projects that would create jobs and boost the economy.

She said the Rs 18,000 crore would be provided over and above the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through additional allocation and extra budgetary resources. This is over and above Rs 8,000 crore already provided this year.

She said the move would help start work on 12 lakh houses as well as complete 18 lakh houses. This would create 78 lakh new jobs as well as demand for steel and cement.

The government had announced a Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Yojana (PMGKP) in March to protect the poor and vulnerable sections from the impact of COVID-19 crisis. It was followed by the Aatmanirbhar Bharat Abhiyan package of Rs 20.97 lakh crore in May, largely focussed on supply-side measures and long-term reforms.