real estate developers in pune

The Union Budget 2017 and its effect on the real estate sector.

The Union Budget for the fiscal year 2017-2018 was introduced on 1st February, 2017 by Finance Minister Arun Jaitley. The groundbreaking new budget will surely procure great changes in the Indian economy and be beneficial for the people of this growing democracy. There will be a revival of investments in the farming industry, rural population, education system, for the poor and underprivileged, infrastructure, financial sector, digital economy, public services and administration.

Also, the real estate sector will receive a notable thrust this fiscal year. The minister announced that ‘Affordable Housing’ will be granted the ‘Infrastructure’ status which will lead to increased participation of private players. Jaitley announced that the National Housing Bank will refinance individual loans worth Rs 20,000 Crore in 2017-18. Following are few of the key highlights of The Union Budget that will have an impressive impact on the real estate sector.

  • 1. Affordable Housing has been given the Infrastructure status
  • 2. 1 crore rural houses will be created by 2019
  • 3. National Housing Bank to refinance Rs 20,000 crore loans
  • 4. Pradhan Mantri Awas Yojana to get Rs 23,000 crore
  • 5. Real estate developers to get tax relief on unsold stock as liability to pay capital gains will arise only in the year a project is completed
  • 6. Instead of Built up area of 30 and 60 sq meters, the carpet area of 30 and 60 sq meters will be applicable for affordable housing
  • 7. Holding period for capital gains tax for immovable property reduced from 3 years to 2 years
  • 8. Window for availing 3 year profit-linked incentives for startups increased to 7 years against 5 years earlier
  • 9. Tax break of 1 year post receipt of the completion certificate, for the unsold stock
  • 10. New FDI policy under consideration
  • 11. Rs 2.41 lakh crore has been allocated to boosting infrastructure for transportation
  • 12. Indra Awas Yojana will be extended to 600 districts
  • 13. Total allocation for the infrastructure sector is Rs 3,96,135 Crore
  • 14. Allocation for National Highways to be at Rs 64,000 Crore
  • 15. No cash transactions above 3 Lakh
  • 16. Indexation for capital gains shifted from 01-04-81 to 01-04-2001
  • These progressive steps will ensure that the real estate sector will grow greatly and be profitable for builders, investors and buyers alike.