The Government of India launched its Atmanirbhar Bharat scheme earlier in 2020, to combat the ill effects of the ongoing Pandemic. The main aim of the scheme was to make India’s citizens self-sufficient. Under Atmanirbhar 3, a homebuyer is entitled to lower stamp duty and lower capital gains tax.
If you’re a home buyer and you’re buying a new home or a residential property (i.e. primary purchase) with a value of up to Rs. 2 Crore, you are entitled to an income tax relief until June 30th, 2021. The differential has now been raised from a 10 % to 20 % till the deadline mentioned above.
Nevertheless, if the transaction charge is lower than the circle rate, a difference of 10 % is permitted as tax relaxation under Section 43A of the Income Tax Act. However, as per recent reports, a difference of 20 % will now be allowed.
As per the Atmanirbhar Bharat scheme, bank ensures for construction activity, which comprised of 10-15 % of the total cost of the project, will now be lowered to a mere 3 % of the inclusive value of the project. This will ensure the availability of extra liquidity to companies and diminish the burden on the contractors.
Even with lowered prices due to stamp duty, there were some developers who were unable to find purchasers. The Scheme will provide better opportunities of finding a buyer. The government of India has also announced that the I-T Act’s future Amendment will allow the sellers to show the lower value, up to 20 % lesser than the circle rate. As a result, it will not be necessary for the seller to pay capital gains taxes on the circle rates.
The aforementioned move by the Government of India is aimed at increasing the demand for housing real estate through relief offered by home buyers as well as real estate developers. We at Wealth Clinic, embrace this new change. The advantages that the Government has issued for all potential buyers make it much easier for new home buyers to invest in residential properties.