The Union Budget 2025-26 has brought a ray of hope for the real estate sector with the announcement of significant tax relief measures. The new provisions are expected to boost the industry and attract more investments.
Real EstateTax ReliefUnion BudgetReitsAffordable HousingReal Estate NewsFeb 02, 2025
The key tax relief measures include a reduction in corporate tax rates from 25% to 20% for real estate firms with an annual turnover of up to Rs 500 crore, an extension of the tax holiday for affordable housing projects by an additional five years, and increased tax deductions for first-time homebuyers.
The reduction in corporate tax rates will increase the profitability of small and medium-sized real estate firms, encouraging them to invest more in new projects and potentially create more jobs.
The extension of the tax holiday for affordable housing projects is aimed at reducing the tax burden on developers, lowering the cost of homes for low-income families, and making housing more accessible and affordable.
The higher tax deductions for first-time homebuyers are expected to increase the demand for residential properties, provide a fillip to the real estate market, and boost the construction industry.
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