Expectations of Real Estate Industry and Start-ups from the Union Budget 2016 by Mr. Ganesh Vasudevan, CEO IndiaProperty.com

Bengaluru, February 23, 2016:

1. A framework for implementing the Real Estate Regulatory Bill that has been passed will help bring execution focus and give the much needed transparency to the real estate industry. Specific budget allocation and time bound plans towards setup of state level regulators will be a key announcement.

2. Roadmap for implementation of the GST will help streamline multiple taxation points and rates and help in better pricing of constructed homes.

3. REITs is expected to revive the realty sector in India, but one of the biggest hurdle it faces today is the Dividend Distribution Tax (DDT). The industry is expecting the Budget 2016 would do away with DDT and developers and other asset holders would soon announce the first REIT listing in India.

4. The real estate industry needs single window clearance to fast track project construction and safeguard both retail and individual investors from losses due to delayed or stalled projects.

5. Tax sops for India based start-ups towards brand building and capitalisation expenses would help. Clarity on laws for eCommerce companies in India is also critical. Currently each state has different laws and definition for eCommerce industry in India, which is a hurdle for the growing industry.

6. Capital gains tax for ESOPs and Angel exits should be made on par to public market investments, encouraging angel investments for start-ups and increasing the upside for employees of start-ups.

For Home Buyers

1. The tax incentives given for home loan needs to be restructured to suit the current property scenario.

Ø The tax exemption on interest paid on home loans should be increased as it is not proportional to the high capital values of homes in cities.

Ø Principal amount paid should be a separate component rather than being clubbed with 80C.

Ø Also, the government should allow home buyers to claim these tax benefits from the time the home loan starts rather than only post possession of the property.

2. Tax incentives should be given for home insurance to both buyers and builders to help popularise financial products that protect assets from risks like floods and other natural disasters.

Corporate Comm India (CCI Newswire)