Important announcement affecting the Real Estate Area from Budget 2022

Affordable Housing

  • Budget 2022 has allocated an outlay of Rs 48,000 crore under the Pradhan Mantri Awas Yojana for the completion of 80 lakh houses this year.
  • Further the government has also announced an outlay of Rs 20,000 crore towards Gati Shakti for integrated planning and coordinated implementation of infrastructure connectivity projects.

New Legislation to replace SEZ Act

  • Budget 2022 has proposed that the Special Economic Zones Act would be replaced with new legislation for the development of enterprises and hubs. It will cover the existing industrial enclaves and enhance the competitiveness of exports.

Digitisation of land records

  • The government has stated that it will encourage states to adopt unique land parcel identification numbers to facilitate digitized management of records and meet the objective of “anywhere registration” of deeds and other transfer documents.
  • It has proposed one-nation-one-registration structural reform for the real estate sector that will facilitate land transactions and sale deed registration from anywhere in the country.

TDS on sale of immovable property

  • Budget 2022 has proposed that 1% TDS will apply on non-agriculture immovable property of over Rs 50 lakh on the basis of the sale price or the stamp duty value, whichever is higher, after an amendment in the Income Tax Act. Currently, the TDS is deducted basis only on the consideration value of the immobile properties. This amendment will take effect from April 1, 2022.

Budget allocation for Smart Cities Mission, Amrut, and Central Vista project

  • Budget has allocated a sum of Rs 14,100 crore for the urban rejuvenation mission AMRUT and the Smart Cities Mission.
  • Under the SCM, 100 Smart Cities have been selected in four rounds based on an all-India competition. All 100 cities have incorporated Special Purpose Vehicles (SPVs). The scheme is aimed at making all Indian cities smart.
  • The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme is targeted at upgrading urban infrastructure across 500 towns and cities.
  • The Housing and Urban Affairs Ministry has been allocated Rs 2,600 crore in Budget 2022-23 for the construction of non-residential office buildings of the Central Vista project, including the Parliament and Supreme Court

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