Budget 2019 and Affordable Housing: Homebuyers alert! Benefits under this section extended; this is how you benefit

Budget 2019 and Affordable housing: After granting relief in individual income taxes slabs, farmers income, the real estate sector was given utmost importance in the Budget 2019 by Prime Minister Narendra Modi government whose party, the BJP, will be competing against the Opposition parties in elections 2019 for the voters attention. Modi has made a commendable vow to Indian citizens, which does become a positive news for the forthcoming poll battle. Interim finance minister Piyush Goyal in a major good news to home buyers and real estate developers, extended the benefits under section 80(i)BA for one more year. 

Goyal said, "Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-20." According to section 80-IBA, deduction of 100% of profits derived from development of affordable housing projects approved on or after 1st June 2016 is available, subject to fulfilment of specified conditions. 

Gagan Randev, National Director, Capital Markets and Investment Services explained, "Extension of new Affordable Housing projects till 2020 would allow the focus on Affordable Housing to continue." 

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There have been made various amendments in this scheme  since in past few fiscals. The latest ones are: 

Extending period within which housing project is to be completed to five years from the date of approval.

Substituting references to “built-up area” with “carpet area” as defined in the Real Estate (Regulation and Development) Act, 2016.

A project situated in the outskirts of metro cities (i.e. located within 25 KM periphery of municipal limits of metro cities), which were earlier required to comply with conditions applicable for housing project located in metro cities, now need to comply with less restrictive conditions as applicable to housing project located in any other place in India.

Now that the scheme is made available for one more year, this comes as a boost for affordable housing in India.