Union Budget 2024: Real Estate, Infrastructure, and Housing key announcements

Union Budget 2024: The Indian government focuses on a roadmap for a ‘developed India‘ by 2047 while maintaining a fiscal deficit target of 5.1% for Financial Year 2025. Here’s what Budget 2024 has in store for the real estate, housing, and infrastructure markets.

As India strives to emerge as a developed country by 2047, the next Union Budget 2024 continues to focus on the infrastructure sector. This is the third budget presented by Finance Minister Nirmala Sitharaman (Modi Government), which has been termed the ‘Modi Government 3.0 Budget’

The key sectors in Budget 2024 were urban development, infrastructure, energy, social justice, manufacturing, research and development, agriculture, employment, and next-generation reforms.

Finance Minister Nirmala Sitharaman said in her statement that “India’s economic growth remains a great exception and will remain so in the years to come”

Also Read: Real Estate Facts about India

Details of Union Budget 2024-25

Key announcements for housing in Union Budget 2024

• Rs 10 lakh crore has been allocated under PM Awas Yojana, Urban 2.0 to meet the housing needs of the urban poor and backward classes.
• Nirmala Sitharaman announced a budget of Rs 2.20 lakh crore to make housing affordable.
• A budget of Rs 2.66 lakh crore has been approved for rural development, which also includes PMAY Gramin Awas.
• Three crore additional houses will be built under PM Awas Yojana in rural and urban areas.
• For Rental housing in “Public-Private Partnership” mode for industrial workers

Union Budget 2024: Measures taken for infrastructure

• Medical colleges, new airports, and sports infrastructure will be constructed in Bihar.
• Investments have been announced for road construction and development under PM Gramin Sadak Yojana Phase 4 in Bihar.
• Buxar-Bhagalpur Expressway, Patna-Purnia Expressway, Bodh Gaya-Rajgir-Vaishali-Darbanga Expressway, and an additional two-lane bridge over Ganga at Buxar will be built for Rs 26,000 crore.

Also Read:- Delhi Mumbai Expressway Complete Details

Home loans: What Budget 2024 includes

• 10 lakh crore rupees interest subsidy scheme for building urban housing for poor people

• Farmer-enabled credit cards in 5 states

• The expected home loan deduction of Rs 5 lakh was not made in this budget.

Income tax: What Union Budget 2024 includes

• Announcement of new tax regime. Standard deduction has been proposed to be increased from Rs 50,000 to Rs 75,000

The tax rate structure is revised as follows

• 0-3Lac Zero
• 3-7Lac 5%
• 7-10Lac 10%
• 10-12Lac 15%
• 12-15Lac 20%
• 15lac & above, 30%

Note:- The new tax system will save up to Rs 17,500 in income tax for salaried employees.

Also Read: What is Property tax

Income tax has been easy for donations and taxation.

• Short-term capital gains have been increased from 15% to 20% and all other financial and non-financial assets will be taxed as per applicable income tax rates.
• Long-term capital gains tax has been increased from 10% to 12.5%.
• Unlisted bonds and debt mutual funds will be taxed as per the already applicable rates.

Also Read: 5 Best Place to Invest in Gurgaon

Some other key measures of Union Budget 2024

• Five schemes have been launched to focus on 4.10 crore youth in five years, involving a central outlay of Rs 2 lakh crore.
• Finance Minister Nirmala Sitharaman has urged the state to reduce stamp duty rates and reduce them further for women home buyers. A similar decision should be taken for urban development schemes.
• The Modi Government of India will maintain solid fiscal support for infrastructure. A budget of Rs 11,11cr* has been allocated by the government for capital expenditure, which is 3.4% of India’s GDP.
• New power projects, including a new 2400 Mega Watt power plant at Pirpainti, will be set up for Rs 21,400 crore.
• Parents can invest in the NPS Vatsalya program on behalf of their children. When the children turn 18 years old, the account will be transferred to their name.