Union Budget 2019 India: The much-awaited Union Budget 2019 is to be presented soon in the Parliament. In line with their expectations from the Interim Budget, the real estate sector has high hopes from this budget. Also being one of the largest contributors to the country’s GDP, the sector expects more than what was announced in the last budget.
Here are some of the major ‘wishes’ of the real estate sector, which we expect to be addressed in the upcoming budget.
We expect the government to abolish stamp duty in the upcoming budget. We all know that stamp duty and registration charges continue to remain a burden for the buyers. This is keeping buyers away from the market and is impacting the sector as well. Bringing the stamp duty under the purview of GST will further enhance the condition of the real estate sector.
The sector seeks an extension of tax holiday for the housing sector, especially for affordable housing approved prior to June 2016. With the introduction of certain policy changes like the introduction of RERA and GST, the sector has remained subdued in the last couple of years. Allowing the extension of tax holiday will help it clear the old inventories.
The sector demands an extension of the exemption provided under the Special Economic Zone Policy (SEZ Act 2005) for Occupiers beyond 2020. It also wishes to bring back some benefits for the developers, which will create greater job opportunities in this sector.
In the upcoming budget, there is a need for more tax benefits for home buyers and investors alike. Though the interim budget did try to help the sector by offering some sops, in the upcoming Union Budget, there is a need for more direct benefits by way of reduction in income tax slabs or by offering higher relief on housing loan rates.
The sector wants the government to form a National Rental Housing Policy. Forming the policy will help the government and the sector fulfil the target of Housing for All. The policy would be positive for Mumbai and the Mumbai Metropolitan Region (MMR), as it would help create a vibrant, sustainable and inclusive rental housing market.
The budget should come up with incentives to attract foreign investors in India. In the recent past, the Non Residents of India (NRI) investments in the real estate have increased, especially in the commercial sector. Giving them some incentives will ultimately help the Indian economy.
The above-mentioned announcements will not only encourage the buyers and create demand, but will also speed up the ongoing projects. This ultimately will benefit the country.
(By Amit Gupta, Managing Director, Orris Infrastructure Pvt Ltd)