Also, with an aim to provide low-cost, affordable housing to the urban poor and low-income group buyers, a scheme has been devised.
The scheme would be anchored in the National Housing Bank, which will receive an additional R4,000 crore towards this. NHB is expected to use these funds to increase the flow of cheaper credit for affordable housing.
To make housing accessible to all, income tax exemption given to interest payment on home loans has been raised from R1.5 lakh per year to R2 lakh per year. “With this increase in the take-home pay, the assesses will be in a better position to take up a higher loan—especially useful in the affordable housing segment in the price range of R25 lakh to R30 lakh,” said Anshul Jain, chief executive, DTZ India.
The terms and conditions for foreign direct investment in the development of smart cities have been relaxed. The minimum built-up area requirement for a project that is eligible for FDI has been reduced from 50,000 square metres to 20,000 square metres. The minimum ticket size of such FDI has also been reduced from $10 million to $5 million.