Budget 2018 should provide more incentives for the first time home buyers:...

Budget 2018 should provide more incentives for the first time home buyers: Shailesh Puranik, Puranik Builders Private Limited.

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India Budget 2018

Shailesh Puranik, Managing Director, Puranik Builders Ltd.
Mr. Shailesh Puranik

The year 2017 was marked as a year with highlights and challenges with various news and policy changes. The industry has gone through a transition and challenging times due to many pivotal policy changes like RERA, REIT, GST, Demonetisation that occurred last year. 2018 also looks like to ride along the lines of 201, However, we expect the government to take some corrective measures in the Union Budget 2018 that would provide relief to the real estate sector.

To begin with there should be no constraints and allowance must be given on the entire interest of housing loan as a deduction for taxation purpose which will again fuel demand for housing. We also expect that the Housing loss set-off limit should be increased from INR 2 lakh. The Budget 2018 should provide more incentives for the first time home buyers and developers who have been reeling the burden of RERA and general slowdown last year. It would be helpful if additional limit is set for the principal amount of the home loan, as usually this limit of INR 1.50 lakh under 80C which gets exhausted under regular investments like PPF, FDs, EPF, insurance premium and much more. Considering the slowdown witnessed in the real estate market the above recommendation can help the sector to gain some momentum and will reap higher growth prospects for builders as well as better returns for the end consumers.”

Shailesh Puranik is the MD of Puranik Builders Private Limited.