Tax holiday for affordable housing extended by a year
The deadline for approval of projects also extended to March 31, 2021.
Finance Minister Nirmala Sitharaman in the Budget 2020 proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by a year to March 2021.
“In order to promote affordable housing projects, I propose to extend the date of approval of affordable housing projects for availing tax holiday by one more year,” the finance minister said.
Tax holiday for affordable housing developers was also extended by a year.
Affordable housing projects are given a deduction under Section 80IBA of the Income Tax Act. To promote Housing for All by 2022, the sunset date for taking approval was extended till March 31, 2020, in the Interim Budget 2019.
“Affordable housing and co-living are two sides of the same coin. The Budget further strengthened the commitment of government to these ventures,” said Arnab Ghosh, National Director, Design & Build and Fitouts, at Colliers International India.
Proposes setting up of 9,000 km economic corridor
A total of 12 lots of highway bundles will be monetised by 2024New Delhi: Finance minister Nirmala Sitharaman on Saturday proposed to allocate ?1.7 trillion to improve connectivity via road, rail, air and waterways.
“A total of 12 lots of highway bundles will be monetised by 2024," Sitharaman said in her budget speech.
The minister also proposed to set up 9,000 km economic corridor and 2,000 km coastal corridor and strategic highways. Delhi-Mumbai expressway that is currently in the works will be completed by 2023. The expressway is expected to drastically cut down travel time between the two cities.
To enhance air connectivity, Sitharaman proposed to build 100 more airports by 2024.
The government’s focus on infrastructure indicates its commitment to revive investment cycle and create jobs to spur growth at a time when the economy is in the middle of a deep downturn.
According to the latest estimates, the Indian economy will grow at 5% in the current fiscal ending March. The growth projected is lower than the 6.1% recorded in 2018-19. In the quarter ended September 2019, economic growth had hit a six-year-low of 4.5%.
In December, the government launched ?102 trillion worth infrastructure projects, under national infrastructure pipeline (NIP), to develop social and economic infrastructure in the next five years.
“There are 6,500 projects across various sectors, including housing, water, clean energy, healthcare for all, education, airports, irrigation projects," Sitharaman said, adding that NIP envisions improving ease of living, kick-start construction work, and create jobs.
To improve connectivity via railways, Sitharaman said there will be more Tejas-like trains for tourist destinations. Besides, there will be immense focus on four station redevelopment programme that is expected to have private sector participation.
The government will also provide 20% equity for Bengaluru suburban transportation project, which is worth ?18,600 crore. At least one major port would be listed on the stock exchanges, the finance minister said.
Aarushi Koundal & Anshul Joshi
As part of its Intended Nationally Determined Contribution, the energy intensity of India’s growth is targeted to decline by 33 to 35 percent by 2030 compared with 2005
New Delhi: Finance Minister Nirmala Sitharam has said the government will advise utilities to close down thermal power plants in violation of National Clean Air Programme (NCAP) norms in her Budget speech on Saturday.
“Utilities running thermal power plants that are old and where the carbon emissions are higher will be advised to close down and that land will be used for alternative energy purposes,” FM Sitharaman said while detailing plans for environment and climate change in the Budget.
Speaking about government’s efforts in furthering the clean air norms, Sitharaman added that the International Solar Alliance will help in achieving Sustainable Development Goals, climate change, disaster resilience, and the Nationally Determined Contributions under the Paris Agreement.