No Tax on flats smaller than 500 Sq ft
Much on expected lines, the government in Budget 2019 has announced to continue with its thrust for Affordable Housing. FM Nirmala Sitharaman also said that several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly.
From giving infrastructure status to the Affordable Housing segment, increasing the carpet area and re-defining income definitions, the government has been consistent with its efforts in addressing affordable housing.
The government has been consistent with its efforts in addressing affordable housing - be it giving infrastructure status to this segment in the previous budget, to helping increase the quantum of beneficiaries in Credit linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (PMAY) by expanding the carpet area and re-defining income definitions.
The previous budget had given a much needed boost to the affordable housing by creating a dedicated fund under the National Housing Bank (NHB).
This fund will be provided for from priority sector lending and fully serviced bonds authorised by the Government of India. The priority sector lending accrues explicitly to those sectors of an economy that failed to get adequate money in time to carry out its activities.
Further, the Budget 2018, FM Arun Jaitley had assured that the Central Government would construct 51 lakh houses in 2018-19 in rural areas by 2022 under PMAY.