Introduction
India’s real estate industry is expecting tax breaks and fresh incentives from Budget 2024 onwards. However, Finance Minister Nirmala Sitharaman’s speech left developers wanting more. However, there is something in the rules that helps developers in some parts of the country.
Budget 2024: A new program has been proposed to move slum dwellers into more affordable housing. Better housing projects are some of the proposals that interest real estate players. The 11.1% increase in capital expenditure is expected to have a ripple effect in sectors including property development.
Building connectivity across the country
“Although the interim budget did not make big announcements, it continued to focus on infrastructure upgrades and building connectivity across the country,” said Anuj Puri, chairman of Anarac Property Consultants, which will benefit real estate growth not only in top cities but also in tier-2 and tier-3 cities.”
The budget also announced long-term loans to states for tourism development and transport-centric development in urban centers. It looks like a big positive for Indian real estate. However, the industry is disappointed that some long-term demands have yet to be met.
20 million houses in the next five years
The government plans to build 20 million houses in the next five years under the Pradhan Mantri Awas Yojana (Grameen). Around 30 million houses have been built since the scheme was launched in 2015. Sitharaman made an official announcement that he was launching a new scheme for middle-class families living in rented houses, slums, or unauthorized colonies. It enables domestic tenants to build or buy their own houses.
Some of the things that happened in the Budget 2024 meeting.
- No Changes in Income Tax Slabs
- No Change in Tax rates for the Company, LLP, or any other person
- Some Exemption to Startups and Extend some Concession. An extension of tax sops for sovereign wealth funds and startups to March 2025
- Taxpayer service: withdrawal of direct tax demands up to ₹25000 for 2009-10 and ₹10000 for 2014-15, benefiting 1 crore people.
- Rooftop Solarization and Free Electricity Through rooftop solarization, 1 crore households can get up to 300 units of free electricity every month.
- A corpus of 1 lakh crore will be made available with 50 years of interest-free financing (long-term financing or refinancing) to encourage the private sector to boost R&D. 1 lakh crore corpus for reduced rate loans to the private sector for research in sunrise domains
- 40,000 ordinary railway coaches will be converted to Vande Bharat standards
- The scheme follows the Prime Minister’s decision on the historic day of the inauguration of the Ram Mandir in Ayodhya
- Sitharaman is working to make India Vikasit Bharat by 2047
- The government can save 2.7 lakh crores by preventing leakages.
- Electronic Agri Mandi connects 1051 mandis, ₹2-lakh crore transactions.
- Free rations to 80 crore people have removed food worries
- 25 crore Indians have been lifted out of multi-dimensional poverty in the last 10 years by the government.
- Direct financial assistance provided to 11.8 crore farmers
- For our government, social justice is an effective and necessary model
- Enrollment of women in higher education increased by 28 percent in 10 years.
- Average real income increased by 50 percent
- Enrollment of women in higher education increased by 28 percent in 10 years.
- Average real income increased by 50 percent
- Direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers, every year under the PM Kisan Samman Yojana.
- PM SVANIDHI provided loan assistance to 78 lakh street traders, totaling 2.3 lakhs got third-time credit
- PM JANMAN Yojana particularly reaches out to weaker tribal groups
- PM Vishwakarma Yojana provides end-to-end support to artisans.
- The scheme for the Empowerment of Persons with Disabilities and Transgender Persons reflects our resolve to leave no one behind
- PM Mudra Yojana sanctioned loans of Rs. 43 crore and Rs. 22.5 lakh crore for the entrepreneurial aspirations of your youth
- Fund of Funds, Startup India, and Startup Credit Guarantee Schemes Helping Our Youth
- The National Education Policy 2020 is introducing transformative reforms
- PM Shri is providing quality teaching
- The Skill India Mission trained 1.4 crore youth, imparted skills and expertise to 54 lakh youth, and established 3,000 new ITIs.
- A large number of higher education institutions 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMs, and 390 universities have been established.
- The projected revised fiscal deficit for FY24 is pegged at 5.8% of GDP and the FY25 deficit at 5.1%.
- To boost domestic tourism, port connectivity projects will be taken up on our islands, including Lakshadweep.
- Rooftop solarization and free electricity
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