Rohit Gera, Gera Developments
The government has presented an outstanding budget considering the fact that this was an interim budget. The farm segment and middle class boosters are extremely welcome. There will certainly be a boost to the consumption on account of the increased disposable income. The fiscal deficit at 3.4% is not a cause for any concern.
The budget speech by the finance minister finally demonstrates the intent of the government to support the real estate sector. The extension of section 80 I B for one year is a welcome step. This will boost the continued production of affordable housing in the country. Permitting two homes to be purchased out of capital gain is most welcome. An increase in the TDS threshold and the removal of notional rent on a second self occupied home are also positive for the consumer. For developers too given the challenging conditions the extension of the notional rent by one year is welcome. Hopefully the boost will help to consume the unsold stock.
The clear indication by the finance minister on the GST reduction for housing will be the next and final boost for the real estate sector.
A bold and favourable budget for real estate sector
On many fronts this is a favourable and bold budget for the real estate industry. Though many of the expectations, whether it is bringing in a structured single-window clearance or granting infrastructure status to the industry didn’t materialize, however the government’s stance towards reducing the GST burden on homebuyers is seen as a welcome move. In its ambitious quest to become a 5 trillion economy in the next five years, the interim budget, viewed as ‘Vision 2030’, has struck the right chord on several fronts, whether it is building next-gen infrastructure or building stronger digital India.
Steps taken and the impact on the real estate industry, as I see it:
The step of making more homes available under affordable housing is in-line with government’s vision of ‘housing for all’.
Giving impetus to the real estate sector, by extending the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years, from the end of the year in which the project is completed is a slight relief to the developer community.
The proposed step to exempt levy of income tax on notional rent on a second self-occupied house is well addressed.
Steps which include rollover of capital gains tax on the sale of houses from one to two houses & full tax rebate for individual taxpayers having taxable annual income up to Rs 5 lakhs is definitely a bold move and a great relief to the Indian salaried class.
The Government has placed the tax exemptions at the right time for rental homeowners
Nagaraju M, Rentprop4U
The Government has placed the tax exemptions at the right time for rental homeowners, who do not have to incur TDS on rental income of Rs.2,40,000, which means that this would benefit owners earning a monthly rental income of up to 20k from the previous TDS limit of 15k Per month. This also right push to the affordable housing sector and enhances the greater possibility for reductions in unsold inventory.
As startups expect provisions from the government that may not have been covered in this interim budget, however, the proposed income tax laws wave off for the better and support home rental startups as it paves way for the possibility of more rental home owners to step onboard.
Right push to the affordable housing sector
Prasoon Chauhan, HomeKraft
This budget has given the right push to the affordable housing sector and the growth witnessed in the last year would continue unabated. As families continue to expand, exemption of tax on notional rent for second self-occupied house will further push affordable and mid-income housing in the country. We will now see more new launches by well established and fundamentally strong developers in the affordable segment to reap in the benefits of Section 80-IBA as well.
A welcome move for the overall residential segment
Sakshi Katiyal, Home & Soul
The Government has delivered a remarkable budget by announcing Income tax relief on Notional Rent from unsold houses and extending it to 2 years from earlier 1 year. This will help the real estate sector to not compromise on their real estate deals. Apart from it, increasing the tax exemptions upto 5 lakh will help more and more prospective homebuyers to invest in their dream property there by strengthening the purchasing power. The budget announcements are a welcome move for the overall residential segment of the real estate industry.