Arun Jaitley’s balanced budget is a boom for real estate sector as it opens up number of opportunities for private realty developers in the contemporary situation.
Post Demonetisation, realty developers were eyeing on Budget 2017 as real estate sector had been deficiently impacted with bold step of change in financial system taken by Modi government.
We have enlisted highlights for real estate sector in Union Budget 2017:
- First of all major thrust of real estate current era Affordable Housing has been given the Infrastructure status.
- Instead of Built up area of 30 and 60 sq meters, the carpet area of 30 and 60 sq meters will be counted for affordable housing.
- One crore rural houses is estimated to be build by 2019
- National Housing Bank (NHB) to refinance housing loans of Rs 20,000 crore
- Funds for Pradhan Mantri Awaaz Yojana has been increased from 15,000 crore to 23,000 crore
- Now Realty developers will get tax relaxation on unsold projects the liability to pay capital gains tax will arise in the year when the project is completed
- Not only this, the holding period for land and buildings has also been deferred to two years from three years which is expected to bring transparency in realty sector
- Increased allocation for the infrastructure and development of transportation system
- Income tax rate reduced from 10% to 5% for tax slab of Rs 250,000 to Rs 500,000.
- Modification of capital gains tax on (Joint Development agreements) JDAs would help reduce the cost of land for the developers