Budget 2019 – Nirmala Sitharaman’s Budget For Affordable Housing

Nirmala Sitharaman, the Finance Minister of India, on the 5th of July, addressed the first Budget session of the 17th Lok Sabha at the Parliament, Delhi.

During the session, Ms. Sitharaman introduced the Budget of India for the financial year 2019-2020.

Nirmala Sitharaman, in order to reverse the weakening economic situation of India, introduced the budget, emphasising more on the improvement of the economic condition of India.

Ms. Sitharaman said, the Government of India (GoI) will launch ‘One Nation, One Card’ for pan India travel, new rental laws for affordable housing and an interest subvention scheme for MSMEs women.

Ms. Sitharaman’s Model Tenancy Code, provision of government land for affordable housing and interest exemption will be blissful for developers and constructors. She also boosted the interest exemption to Rs. 3.5 lakhs from the previous 2 lakhs for affordable housing.

According to Ramesh Nair, the Chief Executive at Jones Lang LaSalle (JLL,) said, “Lack of land availability and rental housing policy have been big bottlenecks for affordable housing. Both (freeing up land and establishing model tenancy code) will help push affordable housing."

In addition, the tax paid on home loan of Rs. 45 lakhs has been deducted to Rs. 1.5 lakhs.

On the other hand, 2 % TDS will be charged for cash withdrawal exceeding Rs. 1 crore in a year.

The new Budget for affordable housing will be applicable till March 2020.

Stay tuned for further updates.