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Budget 2019 Proposal to Give A Boost to the Real Estate Industry
Feb 18, 2019 Real Estate News
Last year has been good for the real estate industry in the country. The emergence of REITs and new government rules boosted the real estate industry. The lower interest rates offered by the banks at the beginning of the year caught attention from the prospective buyers. The buyer took advantage of the lower interest rates, and the RERA rules further fueled the interest.
This year’s budget is, even more, promising for the real estate industry. The budget proposed the extension of Section 80-IB benefits by another year. The government will continue to aid and push the affordable housing segment which aims at providing housing for all by the year 2020.
The proposal is welcomed by the developers and the buyers equally. The developers are showing more interest in the affordable housing projects, and this will help them in selling the unsold inventories.
According to the proposed rule, the builders will not have to pay the notional tax for two years after the completion certificate has been acquired.
Now the investors will be able to enjoy the benefit and the second property that is not leased will not be taxed. This has come as a huge relief to the investors and buyers.
In the proposed rule, the investors will be able to invest the capital gains from the sale of one property in two properties. This has opened many doors for the investors and has been welcomed warmly.
The government has been making the right efforts to revive the slow market. From introducing laws that benefit the buyers to relaxing the taxes that help both the buyer and the developer, the government is not leaving a single stone turned to urge buyers to invest in the real estate.
This year’s budget is, even more, promising for the real estate industry. The budget proposed the extension of Section 80-IB benefits by another year. The government will continue to aid and push the affordable housing segment which aims at providing housing for all by the year 2020.
The proposal is welcomed by the developers and the buyers equally. The developers are showing more interest in the affordable housing projects, and this will help them in selling the unsold inventories.
Benefit for the notional rent on the unsold inventory
Till now the developers had to pay notional rent for the unsold inventory, after one year of acquiring the completion certificate. This put an unnecessary burden on the developers.According to the proposed rule, the builders will not have to pay the notional tax for two years after the completion certificate has been acquired.
Benefit for the notional tax on the second residential property
Until now the notional rent on the second property was taxed not leased. This put a lot of burden for the investor who invests in a second property but has not rented it out. The cash flow was impacted due to this.Now the investors will be able to enjoy the benefit and the second property that is not leased will not be taxed. This has come as a huge relief to the investors and buyers.
Capital gains
Until now the investors could enjoy the capital gain benefit by investing in just one property. There was a provision that the investor could split the capital gains and invest in two properties. This limited their investing area.In the proposed rule, the investors will be able to invest the capital gains from the sale of one property in two properties. This has opened many doors for the investors and has been welcomed warmly.
The government has been making the right efforts to revive the slow market. From introducing laws that benefit the buyers to relaxing the taxes that help both the buyer and the developer, the government is not leaving a single stone turned to urge buyers to invest in the real estate.
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