The change in anything is for a betterment be it your hobbies, lifestyle, or for that matter decisions. The year 2020 turned out to bring a little pause in the lives of people but helped them to introspect what was best for them. Likewise, the authorities too had their time in making decisions and they came out with exceptional changes in the Real Estate that would surely do well to the society and bring profits in the country.
Those regulatory policies uplifted the Real Estate in India thoroughly and helped Real Estate developers as well. Real Estate 2020 has seen a disturbing graph throughout the year. Regulatory policies and real estate regulatory act played a vital role in uplifting Real Estate during this pandemic also.
Here are some amendments that were enforced by the regulating authorities in 2020 for Real Estate in India.
The Reserve Bank of India granted Banks and different main establishments a 3-month Loan Moratorium on EMIs. It was legitimate for 3 months from March to May 2020 initially, the Loan Moratorium become prolonged to August 2020. The circulation becomes anticipated to conflict with the financial disturbance because of the pandemic.
In cases of project delays caused by the COVID-19 pandemic, the government offered relief from penalties and Rs. 30,000 Crore liquidity support. Also, an expanded Credit-linked Subsidy Scheme was provided to the group of people possessing middle-income.
The Finance Minister proposed a deduction of up to Rs 1, 50,000 for interest charged on loans for affordable housing to achieve the target of Housing for All by 2022. This deduction applies to Residential Property loans sanctioned on or before 31 March 2020. Therefore, a substantial number of individuals take advantage of the gain to ensure it. The timeframe was revised to March 2021 by the Ministry of Finance
The Ministry of Finance suggested reducing the tax on cooperative companies to 22 percent plus surcharge and cessation from the existing 30 percent. The tax rate concession was given on a similar line declared for domestic companies in the 2019 Taxation Laws Ordinance. The Ministry has suggested that cooperative societies should be exempted from the alternative minimum levy.
After recognizing the pandemic as a force unforeseen, the Government implemented an extension to the RERA registration of projects. An extension of real estate projects by six to nine months was declared by about 20 states.