Affordable housing fund to boost Housing for All by 2022 Mission, says Rakesh Makkar

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Rakesh Makkar

NEW DELHI: We welcome the announcement of a dedicated affordable housing fund in the National Housing Bank. This initiative as well as the GST announcement last week on rationalisation of affordable and low-cost housing will encourage formal credit penetration into the sector,said Rakesh Makkar, Director, Grihashakti – Fullerton India Home Finance Company.

The Affordable Housing Fund will further add momentum to Government’s agenda of Housing for All by 2022 by providing easy access to formal credit.”, said  Makkar.

India’s Finance and Corporate Affairs Minister Arun Jaitely said in his Budget speech that the government will “establish a dedicated Affordable Housing Fund (AHF) in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorised by the Government of India.”

National Housing Bank Act is being amended to transfer its equity from the Reserve Bank of India to the government, he added.

In last year’s Budget, the government had announced infrastructure status to affordable housing.

To boost real estate transaction, the Budget proposes that real sale value of immovable property would be considered while taxing income from capital gains if circle rate value does not exceed 5 per cent of the consideration.