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Centre eases circle rate differential for home sales till June 2021 Last Updated : 12 Nov 2020 05:09:03 PM IST 
File Photo In a bid to boost housing sales, Finance Minister Nirmala Sitharaman on Thursday announced an increase in the permitted differential between the circle rale and the agreement value of housing units to 20 per cent from the current mandated limit of 10 per cent till June 30.
The increase in differential will be applicable in residential units of value up to Rs two crore. It will help in reducing the tax liability as tax will be applicable on lower value of residential units.Section 43CA of IT Act restricts differential between circle rate and the agreement value at 10 per cent. However, prices may actually be lower than that, and the restriction curbs sale of housing units.Sitharaman said that the decision has been taken to boost sales at a time when demand is low and inventories have piled up.The income tax relief provides incentive to the middle class to buy homes, she said.IANS New Delhi For Latest Updates Please-
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