New Delhi, January 25, 2019: With the upcoming Union Budget 2019-20, the real estate sector is much anticipated and already looking forward to the optimistic changes in the market to restore its setbacks. As it is the last full budget before the general elections 2019, the reduction of the severe liquidity crisis is on the wish list of the realty players. The builder and buyers have different expectations from the Union Budget, where the builders are expectant of the incorporation of stamp duty within the orbit of GST, the buyers are on tenterhooks of the government to deal with incomplete projects.
Mr. Dhruv Agarwala, Group CEO, Housing.com/Makaan.com/PropTiger.com
“We do not expect any major new policy announcements for the real estate sector in the interim budget that would have a favourable impact on the sector. However, if the government considers increasing the tax deduction limit for housing loans, it would be a welcome development. Also, an increase in the tax exemption limit on personal income tax would go a long way in putting more disposable income in the hands of consumers, which would have a positive impact on the economy, which in turn would be good for the real estate sector going forward.”
Manoj Gaur, Vice President CREDAI-National & MD, Gaurs Group
GST’s inclusion in the country has allowed the developers to pass on the benefits of the input tax credit to the buyers. Bringing stamp duty and registration charges in the ambit of GST will be highly appreciated if the Budget addresses it. We expect this year’s interim budget to increase the income tax exemption limit under Section 80 (C) of the Income Tax Act, 1961 from the current Rs 2.50 lakh to at Rs 5 lakh, which will encourage people to go in for their own residential premises.
Pradeep Aggarwal, Co-founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM
In the union budget 2019, we are expecting at least the double amount of fund which was allocated in the previous budget under the Prime Minister’s Housing Scheme. So that ordinary people can get the benefit of subsidy in home loan and more people can fulfil their dreams of owning a home. Apart from this, if the government reduces the GST slab in this budget, then it will have to pay attention to the input tax credit as well, otherwise it will be a direct hit on Affordable Housing as the house becomes even more expensive and will be away from the common man’s reach.
Deepak Kapoor, Director, Gulshan Homz
Rationalization of taxes would be the one most important factor that the real estate sector would expect from the upcoming interim budget. There should be an increase in the volume of rebate or comfort, which one receives while taking individual housing loan. With union budget, realtors are looking forward to bring the abolishment of TDS into the consideration which is deducted for the transfer of movable properties and is a very tedious process. If immediate abolishment of TDS does not seem possible then the government should either get an alternate way or increase the limit up to Rs 1 CR. We welcome all the measurement by the government in order to increase the flow of money into the sector because real estate provides employment to a large section of the population. If liquidity comes into the real estate sector then it would be an improvement for entire economy of the country.
Nakul Mathur, MD, Avanta India
To overcome the impact of reforms like GST, RERA & demonetization, this time expectations are high from the government. We are hopeful that the interim budget would encourage, strengthen & improve the real estate sector and will also pick up pace in GDP growth. Also Real Estate Investment Trust is yet to be listed and tax reforms for REITs must be thought about as well, considering its long term benefit for the sector and country.
Gaurav Gupta, General Secretary CREDAI-Ghaziabad & Director, SG Estates
Real estate sector has modernised today with the concepts of green building taking over. Interim budget 2019-20 must address about providing special incentives to the developers and projects which are offering eco-friendly concepts. This will greatly promote green building concept amongst the developers and help environment as well. Also, Single Window System in real estate sector should be executed across the nation so that timely execution and delivery of projects take place. This budget must also aim at increase the present savings limit so that the young population of the country gets a higher spending power and look at real estate sector as an investment avenue.
Kushagr Ansal, President CREDAI Haryana & Director, Ansal Housing
This interim union budget the government must ensure necessities for the upbringing of tier 2 and 3 cities along with decisions for infrastructural development and strategic connectivity between them. With the saturation of metro cities due to the lack of land availability and high prices, tier 2 and 3 cities must be next in line for urbanisation. Apart from this, any relief towards the personal income tax or increase in savings cap will bring about a cheer and improve the market sentiments that can be fruitful for the realty sector in near future.
Kamal Taneja, MD, TDI Infracorp
There are many positive policy making and initiative taken by the Government towards cleaning up and regulating the sector, but still several policy related issues needs the attention which can make a decisive difference. Long-time pending single-window clearance which can significantly reduce the overall projects cycle time needs to be addressed.
Prateek Mittal, Executive Director, Sushma Group
In the union budget 2019, we expect the government to raise the allocated fund under the Prime Minister’s Housing Scheme to at least double the amount set under last year’s budget. Apart from this, the government should increase the income tax exemption limit under Section 80 (C) of the Income Tax Act, 1961 from the current Rs 2.50 lakh to at Rs 5 lakh, which will encourage people to go in for their own residential premises. Hence, the relaxation in the income tax slab will enhance the purchasing power of home buyers who are keen on having their own house and working hard for it.
Also, even after being a key contributor to India’s GDP and the fourth largest employment generator in India, real estate sector has not been granted the Industry status. Providing an Industry status will enable the developers to raise funds at lower rates which in turn, will result in the reduction of project costs.
Dhiraj Jain, Director, Mahagun Group
The Union Budget 2019-20 holds immense significance as it will be the last budget to be presented before general election. Being one of the core sectors of the economy, real estate sector is still awaiting to be granted an industry status. Section 80EE provides a deduction of Rs. 50,000 for the first time home buyers if the property is not above Rs. 50 lakhs, irrespective of the size or location. We expect this year’s Budget to increase this tax limit or increase the limit of property value so that savings on taxation gets increased and real estate sector becomes an important investment option for buyers.
Ashok Gupta, CMD, Ajnara India Ltd.
Looking at the upcoming election in mid of this calendar year, the feelers doing the rounds indicate that the interim budget is going to be more beneficial for the poor & middle segment citizens in the country. The government will hopefully look into getting industry status to whole real estate sector. It has been a long pending wish of the developers that will help in gaining access to finance at a much lowered cost, thereby making the sector more affordable.
Vikas Bhasin, CMD, SAYA Homes
We urge the government to do away with regulation [Section 23 (5) of IT Act] on taxability of unsold property, which is held as stock-in-trade and not let out as the provision put avoidable pressure on developers/promoters who are facing a sluggish market. We are also expecting the CLSS budgetary support for both Economically Weaker Section (EWS)/Lower Income Group (LIG) as well as Middle Income Group (MIG) should be doubled so that more home aspirants can purchase their dwelling units.
Babita Singh, Chief Sales Officer, Paramount Group
We demand that the scope of Section 54 should be expanded and the capital gains tax exemption should be given even if the sales proceeds are used to acquire more than one property. This will encourage investment in the housing sector.
Sagar Saxena, Project Head, Spectrum Metro
In last 2 years realty sector is performing unexpectedly good. The government has already supported us with RERA, GST and other revolutionary things. From the upcoming budget, we very hopeful that Real estate will get industry status, which will not only help us in getting loans at cheaper rates and directly motivate buyers to purchase property and less price. Also, the government always focus majorly on residential properties when comes to real estate whereas, commercial real estate is equally important and hence they should give us some benefit on GST & stamp duty on commercial property. Rest, if the income tax exemption limit under Section 80 (C) of the Income Tax Act, 1961 increases then it will become an additional benefit for us.
Harvinder Singh Sikka, MD, Sikka Group
We would expect the government to bring into incorporation the stamp duty in the sector within the range of GST. The various subsidies provided under the government policies have been of great assistance in healing the realty market, but still some factors including the Single Window Clearance and the status of Industry to the real Estate sector needs heed to make a significant and positive change for the market.
Rajesh Goyal, MD, RG Group
Coming up with the status of Industry for the real estate sector is highly banked on with the Union Budget 2019-20. This step will not only help in approaching finance at a much lowered rate, but also reduce the cost of the projects bringing about a boost in the realty market. Moreover to procure more investment in the housing sector, the scope of Section 54 to be expanded and the capital gains tax exemption should be specified.
Corporate Comm India(CCI Newswire)