On 1st Feb 2017, Finance Minister Arun Jaitley presented the Union Budget 2017 to set the government’s policies for the coming year. Real Sector experienced a boost after the announcement by making the purchases affordable and within the reach of common man.
Here are some of the budget highlights that are likely to influence the real estate industry:
• Affordable housing has been given the infrastructure status. This step will be helpful to achieve “housing for all by 2020” plan.
• 1 crore rural houses to be built by 2019 for the homeless and those living in kachha houses.
• Real estate developers to get tax relief on unsold stock as liability. Capital gains to be paid only from the year the project has started.
• Holding period for capital gains tax for immovable asset reduced from 3 years to 2 years. This will benefit the investors in real estate.
• National Housing Finance (NHF) to refinance housing loans of about Rs. 20,000 crores in 2017-18.
• Instead of built-up area of 30 and 60 sq meters, carpet area of 30 and 60 sq meters will be applicable.
• No cash transactions above Rs 3 Lakh will be permitted.
• Foreign Investment Promotion Board to be abolished. This will make getting foreign funding through automatic routes easier.
• Allocation to Pradhan Mantri Awas Yojana (PMAY) increased from Rs. 15,000 crore to Rs. 23,000 crore.
Overall it is a positive budget for the real estate sector which is likely to improve land transactions and contribute towards achieving the mission of housing for all by 2020.
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We support PMAY and aim to give roof to everyone. We promise you luxurious homes at affordable rates. Also we are coming up with new residential projects near Manesar.
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