No sector specific measures for the realty sector
In conversation with Jaxay Shah, National Chairman CREDAI
The direction of the budget is progressive, however there are no sector specific measures for the realty sector. The only measure how the budget can boost the real estate sector is by accelerating growth to 6.5% in 2020-21 from 5% at present, boosting income and thereby inducing demand for new homes. The current budget addresses the liquidity challenges by putting more money in hands of potential home buyers by slashing taxes across income groups.
The current budget has given an impetus to National infrastructure plan by giving 100 % tax concession to sovereign wealth fund on investment in infrastructure projects (housing, safe drinking water, clean energy, health). The sector specific measure for real estate include continuation of exemption under Section 80IBA on profits from affordable housing projects and income tax exemption under Section 80C for the individual in the new optional version for another year up to March 31, 2021. Also, with focus on skilling, entrepreneurship, alternate energy, start-ups, agriculture and tourism, government is keen on generating economic growth opportunities in the rural sector, exposing the new talent pool from non-metros leading to development opportunities.
However we are eagerly waiting for the rental housing policy, one time roll over and the 45 lacs limit to be removed in affordable housing definition.