To boost slowdown-hit real estate sector, the government announced infrastructure status to affordable housing to encourage investment in this segment,
The positive from this ‘infrastructure status’ means that developers can access foreign funds at a cheaper cost by way of debt, and it will be a ‘priority sector lending’ for banks and institutions.
Focusing on the housing in rural sector, the government has proposed to construct 1 crore houses by 2019 for homeless and those living in kaccha houses.
The National Housing Bank will refinance individual housing loans of about Rs 20,000 crore in 2017-18.
Allocation for Pradhan Mantri Awaas Yojana – Gramin increased from` 15,000 crores in 2016-17 to 23,000 crores in 2017-18.
The total allocation for infrastructure development in 2017-18 stands at Rs.3,96,135 crores. In the road sector, the Budget allocation has been stepped up for Highways from Rs.57,976 crores in BE 2016-17 to Rs.64,900 crores in 2017-18. Further, 2,000 kms of coastal connectivity roads have been identified for construction and development to facilitate better connectivity with ports and remote villages.
Comprehensive infrastructure development will spur demand for real estate sector.
Under the scheme for profit-linked income tax deduction for promotion of affordable housing, carpet area instead of built up area of 30 and 60 Sq.mtr. will be counted.
The 30 Sq.mtr. limit will apply only in case of municipal limits of 4 metropolitan cities of Delhi, Mumbai, Kolkata & Chennai while for the rest of the country including in the peripheral areas of metros, limit of 60 Sq.mtr. will apply.
For builders for whom constructed buildings are stock-in-trade, tax on notional rental income relating to unsold houses will only apply after one year of the end of the year in which completion certificate is received.
Reduction in the holding period for computing long term capital gains from transfer of immovable property from 3 years to 2 years. Also, the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.
For Joint Development Agreement signed for development of property, the liability to pay capital gain tax will arise in the year the project is completed.
The scope expanded to include investment in bonds issued by more institutions in addition to NHAI & REC
The budget has proposed to restrict the set off of loss under the head ‘House Property’ against other heads of income to Rs.2,00,000. Negative for investor renting property bought from the borrowed funds.
It is proposed that specified person paying rent of more than Rs. 50000 per month shall deduct TDS @5%
Connect with one of our experts. We look forward to helping you with your real estate needs.
Thank you for visiting our website. We are currently updating our website towards compliance of the newly introduced housing law for the State of Maharashtra i.e. the Real Estate (Regulation and Development) Act, 2016 and the rules and regulations notified thereunder.
In the interim, no information, images or material which is currently available / displayed on the website relating to builder projects shall be deemed to constitute any advertisement, invitation, solicitation, offer or sale of any such builders product offerings. Please contact us for any enquiry.CONTACT US