Real estate sector is expecting many changes in policies and procedures in budget 2020.
Every sector has expectation from budget 2020 and real estate sector is not an exception among all. The developers of real estate sector has some fundamental and policy related expectations, have a look on some unique from developers:
While setting micro-markets of housing, in budget 2020, Govt. must bring policy and ensure to set up a belt of the industrial and manufacturing hub to pull job hunters. Organized infrastructure and industrial growth always propel the housing sector because they create employment.
Similarly, a prospective home buyer seeks a better mode of connectivity, planning of social infrastructure, safety, and security as a home buyer to shift in the emerging housing destination. Apart from the network of roads, metro and rapid rail, and airports improve chances of quick habitation. – Ankush Tyagi- CEO, T AND T Group.
India is a country of emerging start-ups and entrepreneurs. Retail investors are more willing to invest in office and commercial space for own livelihood rather than profit-making. But they didn’t get any space in the budget. Waiving tax on LTCG – Long Term Capital Gain investment in real estate was one of the best steps of budget 2019.
But I expect from Govt. to add investment in the commercial unit and hike in the limit of Rs. 2.00 cr as well in the budget 2020. Govt. must make provision of tax benefits on rental income of retail investors who are investing for rental income for a true source of income in commercial properties up to Rs. 1.00 cr.- Mohit Singh Raghav- MD, MMR Group
It is quite unfortunate that a sector which is generating large no of employment, direct and indirect, and contributing to GDP is still waiting for recognition from Govt. Real estate sector is still under the unorganized category of business and that’s why it faces financial discrimination from institutions.
Post RERA, the sector has adopted standard functionality and bringing the next level of transparency. Financial support like other industries where they get easy funds on normal rates will push the sector to perform and set a new benchmark. In my opinion, the real estate sector must get industry status in this budget.- Dinesh Jain- MD, Exotica Housing
To achieve housing for all 2022 and develop affordable housing, the target must be to bring down the costs of units. In this prospect, I would like to reinstate ITC (Input Tax Credit) in real estate with different slab because ITC has helped to control project cost and push supply of pocket-friendly units in the past. Hike in the tax limit of individuals will also encourage property investment in budget 2020. – Suresh Garg- CMD, Nirala World & Ex-Secretary, CREDAI Western UP
Govt. should increase the limit of subsidy and unit size, up to 20 sq mt, in PMAY for home buyers and extend more tax benefits on home loan repayment. AIF (Alternative Investment Fund) is good to support incomplete housing projects but the scarcity of funds is a permanent issue of the housing sector. Govt. must think of setting up a uniform policy in budget 2020 to provide funds on nominal or initial capital on low interest rates like other sectors to real estate for housing projects offering units below Rs. 40.00 lakh. – Hariom Dixit- Director, Gayatri Group
I also recommend that tax paid money is being invested and since pension funds are not being looked as a viable option by many, rental from one commercial property should be free from any taxes be it capital or income and it should be treated at par as PPF, Mr Raghav added further.