Views from Mr Rakesh Reddy, Director, Aparna Constructions & Estates, on the key expectations of the real estate sector from the budget

New Delhi, January 16, 2021: The upcoming budget is the most anticipated budget as it is expected to provide the real-estate sector the much needed recovery and growth impetus. In fact, the industry is looking forward to see assertive and assistive measures from the government in the budget. One of the key aspects that the budget should address is granting of infrastructure status to the entire real estate sector. This will provide a huge boost. It will lead to financing being available to the developer at lower interest rates, which in turn, can make projects more affordable for home buyers.

Another crucial aspect that requires attention is extending the demand-generating measures. Last year, in order to provide significant relief to individual taxpayers, the government has proposed a simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions. In addition to this, tax relief measures which will increase disposable income for homebuyers, as well as the removal of tax surcharges on purchasing of homes. Expanding the availability of income tax deductions for home buyers can incentivise new buyers and widen the market opportunity.

Further, the current taxation structure for the real estate sector could perform better if streamlined and made comprehensive. Also the government should revisit the GST rates levied on the construction materials especially cement and other raw materials. In fact, rationalizing the GST rates of these commodities will bring down the burden of construction cost and the overall pricing also will be positively impacted.

Corporate Comm India (CCI Newswire)