New Delhi, February 02, 2019: The restructuring of the industry: The Government’s message about where the Real Estate Industry is headed
The interim budget has been a reiteration of the government’s emphasis on the affordable housing segment. This sector has been a traditional priority of the government, having earlier been given industry status and a number of other boosts through priority sector lending and PMAY, and the extension of Section 80-IBA benefits reiterates this focus. This segment encompasses the bulk of the industry and is driven by end-user demand that is further encouraged by the government’s decision not to tax notional income on a second self-occupied property and by the amendments to Section 54.
On the other hand, the government has allowed only marginal concessions to the luxury and premium segment, with the exemption from tax on notional rent on unsold inventory now increased to two years instead of one. While this does bring some relief to these developers, it also indicates the government’s reluctance to interfere in this segment.
In conclusion, the interim budget highlights the government’s efforts to bring about a course correction in the real estate industry, by strengthening the base and supporting the mid and low income housing market rather than catering to the icing or the cherry on top.
Corporate Comm India(CCI Newswire)
