(a) whether the Government is planning to take steps for the revival of real estate sector and if so, the details thereof;
(b) whether the Government has taken any step in this direction; and
(c) if so, the details thereof and if not, the reasons therefor?
THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI HARDEEP SINGH PURI)
(a) to (c) Government has taken various initiatives for homebuyers and real estate sector. Goods and Services Tax (GST) on under-construction affordable housing projects has been reduced from 8% to 1% without Input Tax Credit (ITC), and in case of other housing projects from 12% to 5% without ITC; Affordable Housing Fund has been established in National Housing Bank by using backlog in priority sector lending to reduce interest burden on Affordable Housing; additional deduction of Rs. 1.5 lakh on account of interest on home loan has been allowed for affordable housing under Income Tax Act in addition to existing deduction of Rs. 2 lakh; the benefits of availing up to 100% deduction on profits under section 80-IBA of the Income Tax Act have been extended to affordable housing projects approved till 31st March, 2021; and the scope of affordable housing project has been enhanced from 30 to 60 square meters in metro cities and 60 to 90 square meters in non-metro cities for availing the benefits under section 80-IBA of Income Tax Act.
Further, in order to give relief to homebuyers of stalled projects, a special window has been created to provide last mile funding to the stressed affordable and middle-income housing projects in the form of one or more Alternate Investment Funds (AIF) for funding projects that are net-worth positive and registered under Real Estate (Regulation and Development) Act, 2016, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
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