Budget 2016 : Time for Real-Estate to rejoice
Everyone was looking forward to the proposals made in the union budget 2016. Each year experts and analysts from various sectors look forward to the announcements to see how it can impact their sector. Similarly, this year it’s time to rejoice for real-estate industry. With so many big announcements being made in the budget pertaining to real estate, it can definitely be the much needed boost the sector has been waiting for. While there are some aspects to be rejoiced about, it’s not entirely satisfying for many.
Let us look at some of the top points from the budget that can prove to be beneficial for buyers and builders too.
- The budget has proposed to discount additional 50,000 rupees for first time home buyers.
- Builders working would get 100% discount for the profit earned on the affordable properties. Additionally, they would also be exempted from dividend distribution tax.
- The service tax for houses up to 60 sq. meters under any central or state government schemes and PPP schemes are also included in this.
- Earlier excise duty has been exempted only for Concrete Mix that is manufactured at site to be used in construction is now applicable for Ready Mix Concrete as well.
- Digitization of records has become mandatory. Due to this, the issues pertaining to the land titles might be resolved.
- The deduction limit for house rent allowances has been increased from 24,000 to 60,000 per annum.
While the above mentioned points promise to boost the sales in the industry and offer relief, some of the other expectations has been left open. Let us look at some of the points that still prove to be a point of concern for the industry.
- Many were hoping that the real-estate industry would get granted infrastructure status allowing access to low cost funds with respect to contracts from FDIs or ECBs
- Single window system which is supposed to eliminate the approvals getting delayed has not been announced. This has been a requirement for many years now and it continues remain as the point that is yet to be announced.
- 0.5% of Krishi Kalyan Cess on all services will be an additional fee that the buyers will have to pay in addition to the increase in local stamp duty fee.
Government has also announced housing for all by 2022. This could improve the sales in the affordable housing category. Some of the schemes associated has been done by keeping in mind the key initiatives for the coming years. Real estate bill that is expected to be passed in the winter session of the parliament could also bring about many positive changes to the industry.
For the past four years, real-estate sector has been struggling with high construction costs that lead to increase in property prices. Due to this the disposable income available with the high network individuals has reduced thus bringing down the sales in the real-estate sector. The budget presented yesterday provides the much needed break for many people....