Now possible to buy home at 20% below circle rate

Nov 13, 2020, 02:21PM ISTSource: TOI.in

Government has announced tax relief to buyers of new homes. It is now possible to buy a residential unit from a developer at 20% lower than the value arrived at according to the circle rate — also known as the ready reckoner rate of the area — without attracting penal income tax. The developer will also not attract income tax for such a deal. The new norm is for residential units up to Rs 2 crore and will remain enforced until June 30, 2021, the finance ministry said in a statement. The government has also increased allocation to give subsidy under the Prime Minister Awas Yojana (PMAY-Urban) by Rs 18,000 crore, over and above the Rs 8,000 crore already allocated in the Budget.

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