Atmanirbhar Bharat Package 3.0: Govt announces Income Tax relief for Developers & Home Buyers on sale of residential units

by Yasmeen Firdous

The Indian govt has announced today (November 12, 2020) the Atmanirbhar Bharat Package 3.0 for various important issues - Employment (Atmanirbhar Bharat Rozgar Yojana); Credit line scheme (Aatmanirbhar Bharat Abhiyaan); Atmanirbhar Manufacturing; PM Awaas Yojana (PMAY) –Urban; Income Tax relief for Developers & Home Buyers to boost demand for residential real estate; Support for Agriculture; Rural employment (PM Garib Kalyan Rozgar Yojana), Captial and Industrial stimulus, R&D grant for COVID Vaccine development, among others.

Also, the govt share few factors that show recovery in state of economy, some of them are as follows,

This article covers the Income Tax relief for Developers & Home Buyers to boost demand for residential real estate as announced by the finance minister Smt. Nirmala Sitharaman. The govt is understood that due to economic slowdown there has been a decline in prices of residential unit. As we know, presently, the Section 43CA of IT Act restricts differential between circle rate & agreement value @ 10% (prices may actually be lower than this).

The Ministry of Finance decides to give tax relief to both developers and home-buyers and the following decisions has been made.

The necessary amendment to IT Act would be proposed in due course. This measure will reduce hardships faced by both home-buyers and developers and help in clearing the unsold housing units.

Info about 43CA (with effect from 1st April, 2014):

"43CA. Special provision for full value of consideration for transfer of assets other than capital assets in certain cases.—