Union Budget 2021: Sitharaman provides boost to affordable housing

The additional deduction of 1.5 lakh shall therefore be available for loans taken up to 31st March 2022, for the purchase of the affordable housing, Sitharaman said.

New Delhi: Finance Minister Nirmala Sitharaman on Monday gave a boost to the housing sector and home-buyers and proposed to extend exemption available for the purchase of affordable houses and to provide tax exemption for affordable rental housing projects.

“This government sees housing for all and affordable housing as priority areas. In July 2019 Budget, I provided an additional deduction of interest amounting to Rs 1.5 lakh for a loan taken to purchase an affordable house. I propose to extend the eligibility of this condition by one more year to 31st March 2022,” Sitharaman said in her Budget speech.

The additional deduction of 1.5 lakh shall therefore be available for loans taken up to 31st March 2022, for the purchase of the affordable housing, Sitharaman said.

“Further to keep up the supplies of affordable houses, I propose that the affordable housing projects can avail a tax holiday for one more year till 31st March 2022,” she added.

Sitharaman further said that the Central government is committed to promoting affordable rental housing for migrant workers. “We are committed to promoting affordable rental housing for migrant workers. For this. I propose to allow tax exemption for notified rental housing project,” she added.