Property developers are hopeful that the government may at least announce some sops or give some tax incentives to give a boost to affordable housing and induce buyers to buy home.
Hit hard by the current slowdown as well as the recent policy changes, the real estate sector is looking for some sops from the Finance Minister in the Budget 2019, despite being aware of the fact that not much can be expected from an interim budget. Property developers are hopeful that the government may at least announce some sops or give some tax incentives to give a boost to affordable housing and induce buyers to buy home.
Here we are taking a look at some of the budget expectations of developers:
Dhruv Agarwala, Group CEO, Housing.com/ Makaan.com/ PropTiger.com: “We do not expect any major new policy announcements for the real estate sector in the interim budget that would have a favourable impact on the sector. However, if the government considers increasing the tax deduction limit for housing loans, it would be a welcome development. Also, an increase in the tax exemption limit on personal income tax would go a long way in putting more disposable income in the hands of consumers, which would have a positive impact on the economy, which in turn would be good for the real estate sector going forward.”
Manoj Gaur, V-P CREDAI-National & MD, Gaurs Group: “GST’s inclusion in the country has allowed the developers to pass on the benefits of the input tax credit to the buyers. Bringing stamp duty and registration charges in the ambit of GST will be highly appreciated if the Budget addresses it. We expect this year’s interim budget to increase the income tax exemption limit under Section 80 (C) of the Income Tax Act, 1961 from the current Rs 2.50 lakh to at Rs 5 lakh, which will encourage people to go in for their own residential premises.”
Pradeep Aggarwal, Co-founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM: “In the Union Budget 2019, we are expecting at least the double amount of fund which was allocated in the previous budget under the Prime Minister’s Housing Scheme. So that ordinary people can get the benefit of subsidy in home loan and more people could fulfil their dreams of owning a home. Apart from this, if the government reduces the GST slab in this budget, then it will have to pay attention to the input tax credit as well, otherwise it will be a direct hit on affordable housing as the house becomes even more expensive and will be away from the common man’s reach.”
Kamal Taneja, MD, TDI Infracorp: “Many positive policy initiatives have taken by the government towards cleaning up and regulating the sector, but still several policy-related issues need their attention, which can make a decisive difference. The long-time pending single-window clearance system, which can significantly reduce the overall project cycle time, needs to be introduced.”
Kushagr Ansal, President CREDAI Haryana & Director, Ansal Housing: “The government must take steps to develop tier 2 and 3 cities, besides developing infrastructural. With the saturation of metro cities due to the lack of land availability and high prices, tier 2 and 3 cities must be next in line for urbanisation. Apart from this, any relief towards the personal income tax or increase in the savings cap will bring some cheer and improve the market sentiment that can be fruitful for the realty sector.”
Ashok Gupta, CMD, Ajnara India Ltd: “Looking at the upcoming election in mid of this calendar year, the feelers doing the rounds indicate that the interim budget is going to be more beneficial for the poor & middle segment citizens in the country. The government will hopefully look into getting industry status to the whole real estate sector. It has been a long-pending wish of the developers that will help in gaining access to finance at a lower cost, thereby making the sector more affordable.”
Dinesh Jain, MD, Exotica Housing: “Dwelling is one of the fundamental rights of living. So, the housing sector should be brought under ‘No Tax’ bracket in order to ensure lowest cost of developed properties and achieve housing for all in India. This step will provide indirect benefit to home buyers and make the housing sector more affordable for all categories. After the success of CLSS, the government must raise the subsidy criteria for first-time home buyers in PMAY as another encouragement. Interest subsidy will attract more end users to invest in property. Post RERA, transparency has increased in housing, hence the government must award industry status to the real estate sector.”
Suresh Garg, CMD, Nirala World: “The huge gap of affordable housing can be bridged only thorough the availability of affordable housing and for this, construction cost should be as low as it could be! Lowering GST on under construction homes from 12% to 5% is a huge relief for home buyers, but it will not serve its true purpose if the government could not continue input tax credit. With high tax on raw materials and without input tax credit, developers will be unable to construct affordable units, control rates and pass the benefit to buyers. The FM in Budget 2019 should surely think of raising interest subsidy and unit size under PMAY to reach to the masses.”