Budget 2020 India: Even as the real estate sector hopes for new announcements in the upcoming budget, the ongoing tussle between the US and Iran may play a spoilsport.
Union Budget 2020 India: Even as the real estate sector hopes for new announcements in the upcoming budget, the ongoing tussle between the US and Iran may play a spoilsport, said ANAROCK Property Consultants. The tension in the Middle East comes at a time when the country’s stressed real estate sector hopes for the fast implementation of alternative investment funds to rescue stressed residential projects. “The recent Iran-US stand-off may throw a spanner in the works this year. Rising oil prices limit RBI’s scope to decrease interest rates for home loans, and inflation is likely to head north. In short, some of the measures that the government could provide – such as hefty cuts in personal taxes – may not materialize,” Anuj Puri, Chairman, ANAROCK Property Consultants said.
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Finance Minister Nirmala Sitharaman is expected to present the budget in Parliament on February 1, 2020. The budget comes at a time when the economy is undergoing a slowdown on account of a variety of factors both domestic and global.
Sharing recommendations for the real estate sector, Anuj Puri listed a few measures: Hike in the Rs 2 lakh tax rebate on housing loan interest rates under Section 24 of the Income Tax Act; personal tax relief, either by a cut in tax rates or favorably readjusted tax slabs; inclusion of ITC benefit in GST for under-construction homes; immediate deployment of INR 25K crore AIF; ease in liquidity; improvement in credit off-take from banks; more incentives for private sector investments in affordable housing; speeding up infrastructure development and implementation of land reforms. Meanwhile, earlier in the day, ace global investor Mark Mobius said that the government needs to increase spending in the infrastructure sector so as to boost both employment and economy.