By Dr Sanjay Chaturvedi, LLB, PhD
Accommodation Times Bureau
Finance Minister Arun Jaitley ultimately given much sought after status for housing. Affordable Housing got proposed to be infrasturectre status. Which means, affordable housing projects will be eligible for funding from institutions. It comes into priority sector lending. Banks will be happy to fund affordable housing projects in the country.
It is a great budget for housing. For the first time after independence, housing given importance. The correction in rules to claim income tax exemption from affordable housing projects, the time limit to complete such projects from 3 years to 5 years is a great relief. The carpet area definition will also enhance areas of such units.
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2017-18 in Parliament today said that affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits. The National Housing Bank (NHB) will refinance individual housing loans of about Rs. 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing. The Finance Minister Shri Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister.