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. Amit Singhania, Partner, Tax, Shardul Amarchand Mangaldas on Monday said that the real estate sector needs a push from the government in Budget 2017. “Real estate industry is expecting increase in deduction limit available under section 24 of the I-T Act.” He further said that the real estate industry also expects clarity pertaining to the taxability of unsold flats in the hands of real estate developers.
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. 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.