There are just a few days left for Budget 2017 and the real estate sector is eagerly awaiting certain crucial changes and certain pertinent steps to strengthen the sector. Firstly, an industry status is expected for the entire Housing and more particularly affordable housing sector, said Sailesh Puranik, MD, Puranik Builders. “Construction and Acquisition Finance should also get included in the Priority Sector Lending for Banks. Additionally, the Center should increase the tax deduction limit for housing loans from Rs 2 lakh to Rs 4 lakh, especially for buyers in metropolitan cities. This will help the buyer to save almost 30-35% of his taxes,” he said.
“2017 is expected to be the year when the Smart Cities Initiative, RERA, and GST are expected to boost the sector in the right direction. In such circumstances, the real estate sector needs clarity and finalisation of the GST slabs vis-à-vis Realty. Other vital points include single-window clearance and subsidised schemes to be extended for homes up to Rs. 1 crore. The Real Estate Sector is collectively expecting Budget 2017 to live up to its expectations,” he added.
A few days ago, Godrej Group Chairman Adi Godrej said that the government should not “interfere” in the real estate sector, often cited as one of the biggest black money generators, even as he termed demonetisation a “positive step”. “No. Nothing,” he replied when asked if he thought that the government needs to do something as some argue that real estate and gold are among the biggest generators of unaccounted wealth. “You cant interfere in the business,” Godrej told PTI.
Narendra Modi government will be presenting Budget 2017 on February 1. Yesterday, Supreme Court dismissed the plea to change the Budget date from February 1. The Budget is special not only for the fact that it has been preponed but more importantly because it comes within months after Modi government’s massive demonetisation drive. Most analysts and economists expect Budget 2017 to be tax-payer friendly, especially given the pain that common man has faced after old Rs 500 and Rs 1000 notes ceased to be legal tender money.