Budget 2020: How to bring real estate back to its feet; financing, change of status sure shot cure. By Financial Express
Budget 2020-21: With just five more days for Budget, suggestions are pouring for finance minister Nirmala Sitharaman to boost the economy and spur consumption in various sectors associated with it.
Budget 2020 India: From
home loans deductions to resolving issues such as multiple clearance
check points for Housing for All, this is what members of the real
estate industry want from this year’s Budget.
Union Budget 2020: With just five more days for Budget, suggestions are pouring for finance minister Nirmala Sitharaman to boost the economy and spur consumption in various sectors associated with it. Real estate sector, which has been reeling under an economic slowdown as well for several years now, also needs reforms which can provide growth to the sector. From home loans deductions to resolving issues such as multiple clearance check points for Housing for All, here’s what members of the real estate industry want from this year’s Budget.
“We expect the government to exempt organizations engaged in real estate business from the burden of tax on notional rental income or the period of one year should be extended to five years,” Rahul Singla, Director, Mapsko Group said. He added that due to the lack of it, buyers keep away from the market. While the government has announced an additional deduction of Rs 1.5 lakh paid on a home loan up to Rs 35 lakh with total values not exceeding Rs 45 lakh, Rahul Singla said that the government must do away with this restriction and instead should extend a higher deduction to all home buyers.“Industry Status is a long due demand which will help in raising funds thus we are expecting an announcement in this regard,” Ravish Kapoor, Managing Director, Elan Group said. Similar thoughts were echoed by Santosh Agarwal, CFO, AlphaCorp. “The grant of industry status has been a long-standing demand of the real estate sector, if implemented it would raise low-cost loans within the system and the benefits would be passed on to the consumers,” he said. He further added that the real estate sector hopes for a quick implementation of AIF for the completion of stalled housing projects along with approving single-window clearance mechanism.
Other than these suggestions, “recognizing the virtual office as a separate product, ensuring tax rationalization on REITs and lowering costs of land acquisition will be a huge breather for the sector,” Gaurav Bhalla, MD, Vatika Hotels said.