Shares of Real Estate companies rallied as affordable housing tax SOPs, infra allocation announced in the Budget 2021 brought cheer to the developers.

Share Market Live

NSE

Finance Minister Nirmala Sitharaman reiterated the government’s commitment to housing for all by extending tax exemptions on interest paid towards affordable housing loans by another year.

In her Budget speech for FY22, Sitharaman said the government’s decision to allow tax exemption of Rs 1.5 lakh for the interest taken on home loans on affordable housing last year, would be extended till March 31, 2022.

After the announcements, the Nifty Realty index surged over 6 percent with all constituents in the green.

DLF rallied 10 percent, Indiabulls Real Estate was up 8.8 percent, and Sunteck Realty advanced 7.6 percent during the day. Phoenix, Godrej Properties, Prestige Estate, and Oberoi Realty added between 2-6.5 percent.

The finance minister also said that her government had proposed tax incentives for developers constructing affordable rental housing for migrant workers. In a further boost to the real estate sector, Sitharaman also announced that dividends payable to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs) would be exempt from TDS.

“The one-year extension of Rs 1.5 lakh tax-deduction on housing loan for affordable housing units along with tax incentive for developers of affordable housing is welcome by the real estate industry,” said Deepak Goradia, President, CREDAI (Maharashtra Chamber of Housing Industry), “This will continue to provide support to accomplish the Prime Minister’s ‘ Housing for All” mission,” he added.

Catch all live market action here

For full coverage on Budget 2021, click here

First Published:Feb 1, 2021 3:22 PM IST