Budget wishlist: ‘Govt must further liberalise real estate sector’

Published: February 2, 2015 3:34 PM

In Budget 2015-16, we expect government to continue with positive policy announcements to improve business environment and give strong push to growth.

Here are pre-Budget expectations from Mohit Goel, CEO, Omaxe Limited and Anubhav Jain, Director, Group Silverglades:

tax benefit

Mohit Goel, CEO, Omaxe Ltd.

Post the interim Budget, where a number of positive announcements were made, the macroeconomic indicators have improved with inflation and industrial growth showing positive signals. The coming Budget is expected to continue with positive policy changes in order to improve business environment and give strong push to growth. Government has been moving steadily on Smart Cities and the Budget will have a lot of announcements on this front including the broader contours.

With several countries pledging support including the US, Singapore etc. Smart cities will bring in a lot of opportunities for private developers. The Government must further liberalise and allow FDI in other segments, after allowing the same in construction and affordable housing. The Government must re-introduce tax benefit under section 80 IB (10) of the Income Tax Act in order to overcome the supply gap and fulfill the vision of Housing for all by 2022.  This benefit should also be extended to Smart Cities, affordable housing and re-development. The real estate sector is expecting its long pending demand of grant of infrastructure status.

It will immensely help the sector to access easy finance. A single window clearance mechanism is the need of the hour when implementation of project is the key to investment and growth in the country today. GST is an important tax regime and will benefit the economy going forward. Inclusion of real estate in GST is something that needs a holistic view but we believe its inclusion will bring about a lot of transparency in the sector.

Taxes comprise a major portion in a property purchase and it must be rationalized. While a cut in interest rate by RBI isn’t alone enough, buyers, too, have to be incentivized through rebate in Personal Income Tax and more money be put into their hands in order to drive demand.

Anubhav Jain, Director, Group Silverglades

In this budget we expect Government to continue with positive policy announcements to improve business environment and give strong push to growth. This year the growth prospects look better than the last year for all sectors and as a developer we expect a lot in term of attention and revenue for the sector. The long pending demand to announce real estate sector as an industry is foremost concern. The Government should also ensure quick passage of Goods and Service Tax which will replace numerous taxes and help the consumers. The deduction for interest on housing loans needs to increase from the current limit. Removal of numerous taxes can encourage real estate sector on large scale.

(The views expressed here are the authors’ own)

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