Budget 2019: Real Estate Industry Outlook

 

Budget 2019 is Buyers’ friendly

Parveen Jain, Vice Chairman NAREDCO, Tulip Infratech

The Interim Budget 2019 is Buyers’ friendly with the announcement of Tax rebates and incentives which is going to increase the investment and buying power of the common man, the biggest of all that No Taxation for annual incomes upto 5 Lac and gratuity limit having increased from 10 lac to 20 lac. The major highlight is that Rs 1 lac crore has been granted for Affordable Housing scheme which shall give a tremendous boost to achieve the PM’s mission of ‘Housing for All by 2022’. It has been recommended to GST council for reducing GST rates for home buyers.

Other major highlights include that benefits under section 80(i)BA to be extended for one more year for Affordable Housing projects approved till 31stDec 2020. The benefit of rollover of capital tax gains shall be increased in investment from one residential house to two residential houses for a tax payer having capital gains upto 2 crore rupees, can be exercised once in a life time. Benefit in notional rent has been given in unsold inventory from one year to two years.The ceiling limit of TDS for rent has been increased from 1.8 lac to 2.4 lac per annum.

Tax rebate will facilitate greater money circulation through banking and economy channels

Pankaj Jain, Realistic Realtors

Provisioning of Income Tax rebate upto 5 lac per annum reiterates the government’s commitment to bringing a large number of tax payers under the tax net. The tax rebate will facilitate greater money circulation through banking and economy channels. Real estate affordability and accessibility through increase in infrastructure development budget and housing under PMAY will bolster consumer sentiments in the realty sector, leading to rise in home sales in cities and their outskirts. GST needs to be simplified on a priority basis for easing real estate sector sentiments and expediting completion of under-construction projects. Demonetization has started showing a positive effect on the economy and with amended Income Tax rules, a large number of the unbanked population will be brought within the ambit of the organized banking framework.

A housing and homeowner friendly budget

Nimish Gupta, RICS South Asia

The sanctity and prudence generated in the overall economy, on the back of continuous reforms over the last three years were expected to deliver a business environment that was conducive, opening up the economy for large hearted schemes. As RICS, we expect that the Real Estate and Construction sector, which suffered the maximum brunt of some of these reforms, is now expected to grow significantly in light of the changes that these schemes and reforms intended. RERA and the Benami transactions act have already resulted in wider semblance in the market on the back of increased transparency. Read more…