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Finance Minister Nirmala Sitharaman detailed out the points to be taken under the much needed economic package to withstand the thump caused by the COVID-19 as endorsed by Prime Minister Shri Narendra Modi.
The first set of the announcement was directed towards the Micro, Small and Medium Enterprises, Employee Provident Fund, Non-Banking Financial Companies, discoms, real estate, and the direct taxes.
Let’s discuss the main points of the relief package directed towards real estate and it’s impact on South Delhi Real Estate Market.
Force Majeure :
These days the main concern among the reputed builders of South Delhi is of Project Completion date as many of the migrant laborer have already gone to their hometown with great difficulty, no one knows for sure when will they be returning back to South Delhi for work.
It’s a great news that Government has already proclaimed COVID-19 as a force majeure.
Let’s discuss, what is a force majeure?
Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or an event described by the legal term act of God, prevents one or both parties from fulfilling their obligations under the contract. In practice, most force majeure clauses do not excuse a party’s non-performance entirely, but only suspend it for the duration of the force majeure.
Force Majeure will really help the South Delhi Builders and Developers by extending their mentioned project completion dates and it’s registration by six months. As a result of it, the home buyer in South Delhi will understand that the possession of their under construction property might be delayed for the next six months.
This move will surely provide a boost for the stressed South Delhi real estate market.
This will bring more sensibility into the market as buyers will understand the delay of possession due to the pandemic and will not be rushing towards the court on account of project delay for up to the period of 6 months.
Providing this relief will surely help the real estate sector which has been an integral part of the economy.
TDS :
The Finance Minister also announced that tax deducted at source (TDS) will be reduced by 25 percent with immediate effect from now to March 2021.
It’s a huge move which is anticipated to provide around Rs 50,000 crore back to the pockets.
There is a relief for property consultants in South Delhi as TDS on property brokerage/commissions has been reduced with immediate effect from 5% to 3.75%.
Conclusion:
The current economic package is surely expected to give South Delhi Property Market a much needed push towards facing the COVID-19 pandemic.
SouthDelhiFloors.com research team also suggests some other steps that the government should be taking immediately after you support the real estate scenario.
- Reduction in Stamp Duty Charges
- Reduction in additional 1% charge currently being imposed alongside stamp duty charges
- Reduction of GST on purchase of under construction properties, as 5% is still a very high number and costs a lot to the buyer’s pocket.
Other Blog Posts and Real Estate Articles Written by SouthDelhiFloors.com :
- Guide for property sellers if a home buyer withdraws from real estate transaction.
- South Delhi Property Market Reopening – Get ready for an Inrush of Home Selling.
- COVID Alert – What Your local real estate agent SouthDelhiFloors.com wants you to know about Property Market right now?
- COVID-19 IMPACT: Why Home Buyers will Buy Bigger Houses in South Delhi?
- How South Delhi Real Estate demand might look like after COVID-19.
- South Delhi Realty to Witnesses Online Advancement due to COVID-19.
- Impact of COVID 19 on Property Market in South Delhi.
- Vastu remedies and corrections for your home.
- Mistakes – First Time Homebuyers Make in Delhi
- INFOGRAPHIC – Five Reasons to Buy Under construction Property in South Delhi.
