Developers laud steps for realty in 3rd round of stimulus

New Delhi, Nov 12 : Real estate developers and experts have applauded the measures to boost demand and provide liquidity for the sector announced by Finance Minister Nirmala Sitharaman on Thursday.
Sitharaman announced an increase in the permitted differential between the circle rate and the agreement value of housing units to 20 per cent from the current mandated limit of 10 per cent till June 30.
The increase in differential will be applicable in residential units of value up to Rs 2 crore. It will help in reducing the tax liability as the tax will be applicable on lower value of residential units.
The minister said that the decision has been taken to boost sales at a time when demand is low and inventories have piled up.
Further, the Centre will also allocate Rs 18,000 crore more to the Pradhan Mantri Awas Yojana (PMAY) – Urban for building houses for middle income and economically weaker sections of the country.
Satish Magar, President, CREDAI National, said that decision to increase the permitted differential limit would help developers to offload long-standing unsold inventory without having any liability under section 43CA for developer and under section 56 (2)(X) of the IT Act for home buyers.