“Budget 2017 is expected to be out soon. The Real Estate Sector is eagerly awaiting certain crucial changes and certain pertinent steps to strengthen the Sector. Firstly, an industry status is expected for the entire Housing and more particularly Affordable Housing Sector. Construction and Acquisition Finance should also get included in the Priority Sector Lending for Banks. Additionally, the Center should increase the tax deduction limit for housing loans from INR 2 lakh to 4 lakh, especially for buyers in metropolitan cities. This will help the buyer to save almost 30-35% of his taxes.
Even the tax benefit, in the case of a home loan, is provided to a buyer after the possession of an apartment. This should be considered from the day the construction of a particular project has started. It would be helpful if, under 80C, the additional limit is set for the principal amount of the home loan, as usually this limit of INR 1.50 lakhs under 80C gets exhausted under regular investments like PPF, FDs, EPF, insurance premium and much more.
2017 is expected to be the year when the Smart Cities Initiative, RERA, and GST are expected to boost the sector in the right direction. In such circumstances, the Real Estate Sector needs clarity and finalization of the GST slabs vis-à-vis Realty. Other vital points include single-window clearance and subsidized schemes to be extended for homes up to Rs. 1 crore. The Real Estate Sector is collectively expecting Budget 2017 to live up to its expectations.’’