Budget 2018: Easier GST to industry tag, will FM gift these to real estate?

Budget 2018: Easier GST to industry tag, will FM gift these to real estate?

The chief Business Officer of India Real Estate Property Site lists the various demands of the real estate sector from Finance Minister Arun Jaitley's Union Budget 2018-19 and explains how they could help the sector

The year 2017 was a landmark one in terms of policy directives. The real estate market witnessed a temporary setback on account of reforms like Real Estate (Development & Regulation) Act (RERA) and Goods and Services Tax (GST).

However, after withstanding the aberrations, the market now seems to be settling down to the changes, which are envisioned to bring long-term benefits. The New Year has started with hopes of a market revival, especially on the back of positive policy roll-outs in the upcoming Union Budget 2018-19.

Every year, the Union Budget 2018presents an opportunity to the government to work towards the revival of Indian real estate and address the looming concerns that afflict various stakeholders. Budget 2017 doled out several benefits such as infrastructure status to the affordable housing segment and lower interest rates for loans up to Rs 12 lakh, but 2018 awaits resilient steps to kick start the recovery phase.

The Indian realty industry stands at the cusp of restoration and announcements of reformatory measures to address high land costs, unsold inventory and tedious approval processes are instrumental for the turnaround of the sector.

In 2018, stringent action is required for renewal. Certain initiatives towards reviving the sector are critical in the short term. Here are some of them:

• Industry status: This is a long-pending demand of the real estate sector which is considered vital for its expansion. Accordance of an industry status will extend subsidies and tax exemptions that are required to uplift the sector.

Availability of easier and cheaper funds to the real estate developers will be a major booster for the market.

* Increase in tax shields for home buyers: The Budget session must look into the various sections of the Income Tax Act to extend support to homebuyers and boost real estate investments. Under Section 80C of the Income Tax Act, 1961, the government allows tax benefit on savings up to Rs 1.5 lakh. Principal repayment of completed homes qualifies for tax deduction under section 80C. Extending this limit to Rs 2 lakh or Rs 2.5 lakh could make real estate investment more lucrative.

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