Looking at What the Budget 2017 Offers the Real Estate Arena
May 25, 2017 Real Estate News
The Indian real estate industry was given the much needed push in the budget of 2017-2018. Our Finance Minister, Arun Jaitley announces that an ‘infrastructure status’ would be given to the ‘Affordable Housing’ plan. This will help in increasing the involvement of private players. This move will be very beneficial and will help in achieving the aim of housing for all by the year 2022. The credit off-take towards the affordable housing will be leading to the creation of a good supply for the stake holders, all the first time home buyer and also the developers who will now be having access to a much cheaper funding.
It was also announced by the Finance Minister that the National Housing Bank will be refinancing individual loans of the worth of Rs 20,000 crores in the year 2017-18. The National Housing Bank allocation will help in giving a big thrust to the affordable Housing Finance companies such as Gruh Finance, Repco, AU housing.
In case of personal income tax, there has been a reduction of almost five percent, the current rate for all incomes is between Rs 2.5 to Rs 5 lakhs which have been reduced. All the tax payer for other categories will be saving almost Rs 12,500.
This budget of 2017 and 2018 has a lot of highlights such as providing affordable housing with infrastructure status, almost one crore houses in the rural area will be created by the year 2019, the national housing bank will refinance Rs 20,000 crore loans, the Pradhan Mantri Awas Yojna will be getting Rs 23,000 crores. Not just that, the real estate developers will be getting a tax relief on the unsold stock as a liability to pay the capital gains will be taken only when the project is completed. Rather than the ‘built up area’ of 30 square metres and 60 square meters, even for the affordable housing, the carpet area of 30 square metres and 60 square meters will be applied.
The capital gains tax for all the immovable property has been reduced from three years to two years now. For the enhancement of infrastructure around Rs 2.4 crores has been allocated. The ‘Indra Awas Yojana’ will now be extended to almost 600 districts. The new FDI policies are under consideration. There will be no cash transaction that will happen above three lakhs. The amount of 64,000 crores has been allocated to National highways. The indexation for the capital gains has been shifted from 1st April 81 to 1st April 200. The allocation for the entire infrastructure industry is around Rs 3, 96,135 crores.
The points in the budget hope to bring a great amount of betterment to the prevailing real estate industry.
It was also announced by the Finance Minister that the National Housing Bank will be refinancing individual loans of the worth of Rs 20,000 crores in the year 2017-18. The National Housing Bank allocation will help in giving a big thrust to the affordable Housing Finance companies such as Gruh Finance, Repco, AU housing.
In case of personal income tax, there has been a reduction of almost five percent, the current rate for all incomes is between Rs 2.5 to Rs 5 lakhs which have been reduced. All the tax payer for other categories will be saving almost Rs 12,500.
This budget of 2017 and 2018 has a lot of highlights such as providing affordable housing with infrastructure status, almost one crore houses in the rural area will be created by the year 2019, the national housing bank will refinance Rs 20,000 crore loans, the Pradhan Mantri Awas Yojna will be getting Rs 23,000 crores. Not just that, the real estate developers will be getting a tax relief on the unsold stock as a liability to pay the capital gains will be taken only when the project is completed. Rather than the ‘built up area’ of 30 square metres and 60 square meters, even for the affordable housing, the carpet area of 30 square metres and 60 square meters will be applied.
The capital gains tax for all the immovable property has been reduced from three years to two years now. For the enhancement of infrastructure around Rs 2.4 crores has been allocated. The ‘Indra Awas Yojana’ will now be extended to almost 600 districts. The new FDI policies are under consideration. There will be no cash transaction that will happen above three lakhs. The amount of 64,000 crores has been allocated to National highways. The indexation for the capital gains has been shifted from 1st April 81 to 1st April 200. The allocation for the entire infrastructure industry is around Rs 3, 96,135 crores.
The points in the budget hope to bring a great amount of betterment to the prevailing real estate industry.
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