Planning to buy a house? Do it within 7 months to gain from FM's largesse

Low property prices, cheap loan rates, and tax relief make this a good time to strike a deal

To boost real estate demand this festive season, the finance ministry on Thursday announced income-tax relief for home buyers and developers. Buyers can now purchase a home at a price that is up to 20 per cent below the circle rate without attracting tax penalties.

The issue: The circle rate is set by state governments. Stamp duty has to be paid on this price in real estate transactions. Due to the long slowdown in real estate, which got exacerbated by the pandemic-led economic downturn, prices in many parts of the country have dipped below circle rates. When a transaction takes place