A budget conducive to the real estate sector
Authored by Madhusudhan G., Chairman and MD, Sumadhura Group
- The Union Budget successfully portrayed the government’s continued efforts to achieve ‘housing for all’ by 2022 with over 80 lakh houses being sanctioned under this initiative.
- The additional tax deductions on home loans for self-occupied house owners and tax reliefs on interest paid are an incentive enough to boost up sales in the affordable sector.
- The proposed Model Tenancy Law aims at bringing momentum in the rental-housing sector.
- Government to reform multiple Labour Laws and to rationalize them into four codes, thus standardizing the process of registration and filing of returns.
- The partial credit guarantee to the Public Sector Banks (PSBs) addressed the crucial NBFC liquidity issue.
- Besides this, the Government’s decision to increase investment allowance of Foreign Portfolio Investors (FPI) in REITs will spur the flow of funds in the industry.
- Although issues like single window clearance and Input Tax Credits (ITC) benefits in GST weren’t addressed, multiple pro-industry reforms majorly outweigh the few misses.