In order to fuel activity in the housing sector under Pradhan Mantri Awas Yojna, Jaitley proposed to give 100% deduction for profits to an undertaking from a housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019, and is completed within three years of the approval. Minimum Alternate Tax will however, apply to these undertakings.
For the ‘first – home buyers’, he proposed to give deduction for additional interest of `50,000 per annum for loans up to `35 lakh sanctioned during the next financial year, provided the value of the house does not exceed `50 lakh.
Another proposal to stimulate housing activity is to facilitate investments in Real Estate Investment Trusts. He proposed that any distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax.
He has further proposed propose to extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work at such site to Ready Mix Concrete.