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The Union Budget 2023 is comprised of a number of major announcements linked to the real estate industry and has a long-term impact.
Infrastructure investment has a large multiplier effect on economic growth and employment. Private investments resume after post-pandemic home demands.
Budget 2023 takes the initiative to accelerate the virtuous cycle of investment and job creation within the Real Estate industry.
Here Are The Key Points Of Real Estate Budget 2023
PMAY (Pradhan Mantri Awas Yojana): The overall budget for PMAY has been increased by 66% to over 79,000 crore.
The Union Finance Minister proposed amending provisions for calculating capital gains in case of joint development of the property to include the amount received via cheque.
She proposed capping the deduction from capital gains on investment in residential property under sections 54 and 54F at Rs 10 crore in order to target tax concessions and exemptions.
REITs (Real Estate Investment Trusts) /InvlTs (Infrastructure Investment Trusts)
REIT/InvIT is a tax-efficient entity that owns a portfolio of income-generating real estate assets. FM proposed taxing distributed income by business trusts in the hands of a unit holder (other than interest, or rent, which are already taxable) that is currently tax-free in both the unit holder and the trust.
Urban Infrastructure Development Fund (UIDF)
An Urban Infrastructure Development Fund (UIDF), similar to the RIDF, will be established through priority sector landing shortfalls.
The National Housing Bank will manage this, and public agencies will use it to build urban infrastructure in Tier 2 and 3 cities.
Co-operative societies now have a higher limit of Rs 3 crore for tax deducted at source (TDS) on cash withdrawals.
Non-Resident Indians (NRIs)
It is proposed to change the time limit for filing an appeal against a judging authority’s order under the Benami Act to 45 days from when the initiating officer receives the order.