8 Expectations from Union Budget 2015-16

Q: The real estate sector has several expectation from budget 2015-16. What is your opinion and what initiative should Modi Govt. take to give better shape of Indian Realty Market?

Sujan Mitra,

29th January 2015

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Replies (14)

Hi all,
Have you heard the news? PM Narendra Modi's "Housing for all by 2022" scheme to be launched by mid of June'2015. The government is getting ready to launch PM Narendra Modi's most committed scheme "Housing for all by 2022". And he is probably to launch the scheme as an umbrella mission after recounting all affordable housing schemes and slum redevelopment projects.

Shreya Agarwal, Mumbai

28th May 2015

Comment

Now it's time to say that BJP Govt. is really doing good for common people.

Have the urban and rural development ministries have finalised their specific elements for providing 6 lakh houses for 6 lakhs people across the country?

Kishore Pathak, Mumbai

28th May 2015

Even i think so, Their party is really doing recommendable jog. The urban and rural development ministries have finalised their respective components for providing 6 lakh houses, 2 lakh in urban areas and 4 lakh in rural areas across the country.

Shreya Agarwal, Mumbai

28th May 2015

Well Balwinder,
This simple formula will help the Government to solve the housing problem. Another area where govt. should take a look that the exemption in respect of investment in the house for tax purpose is if the flat is ready within 2 yrs. In majority of the cases, the investor having derived Long-term Capital Gain finds that the house is not ready within the stipulated time by the builder although majority of the payments have been made. The Government should amend the law that in case the house is not ready within the stipulated time period, then also tax benefit will be available for the payments made within two years.

Harmeet Kaur,

10th February 2015

Comment

In such scenario he/she should invest in 2 or 3 properties so that all children can have small houses or flats of their own.

But the current law does not permit this. Hence, it is suggested that the provisions of Section 54 may be amended to provide investment in the house property without any restriction for the number of houses to be purchased.

Balwinder Singh,

9th February 2015

Comment

But Balwinder,
There may be a situation when the tax payer may have more than 1 child and he would like to invest the entire amount of property for only buying the residential property. What should he do?

Harmeet Kaur,

9th February 2015

Comment

You are right Harmeet,
At present, to save Capital Gain on property particularly Long-term Capital Gain if a person has received capital gain of Rs 1 crore, then he/she is permitted to make an investment in 1 residential house or pay tax at 20%.

Balwinder Singh,

9th February 2015

Comment

As per our present Prime Minister, every person must have a house of his own by the year 2022. And it is possible through the Income-tax Law, at least, to meet the housing demand to some extent by amending small little provisions in the income-tax law.

Harmeet Kaur,

9th February 2015

Comment

Announcements regarding the regulation of construction material costs is also expected. Many developers with less capitalization have been forced to slow down or halt their projects because of this. Thus, the costs of raw materials such as cement and steel need to be brought down or an upper ceiling imposed on their prices.

Vinu S,

31st January 2015

Comment

Well Vinu,
Another expectation from the Union Budget 2015-16 is that it will announce a reduction in the cost of property registration. The recent hike in ready reckoner rates in Maharashtra has been a sentiment setback for the real estate sector. Stamp duty and registration costs are as high as 6% in most cases, and this needs to be reduced by a few base points to aid consumers.

Samrat,

30th January 2015

Comment

There is a big need for an apex body which will address the concerns and look into issues from this sector.

There is a lot of demand in the market which is being held hard by the affordability factor and buyers are pretty hopeful that the RBI will bring about a good news for interested buyers. Most eyes are set on the reduction of home loan rates so as to provide the required push for the sector.

Samrat,

29th January 2015

Comment

You are absolutely right Samrat. At present, home buyers need to pay service tax, VAT as well as stamp duty when purchasing flats. The Government should make sure the quick way of Goods and Service Tax which will replace a lot of taxes and help the consumers.

Vinu S,

29th January 2015

Comment

As we all knw that the construction delays have trouble the sector for quite some time now. Thus, faster clearances for a larger segment of residential projects will be a key for reducing project delays.

A sector that generates so much attention and revenue is still not recognized as an industry. Thus, Industry Status has been a request that has been put forward and ignored several times now. This will give builders approach to funds at reduced interest rates and reduced subsidiary thereby making housing more affordable.

Samrat,

29th January 2015

Comment

This budget needs to do something unique to bring down the cost of borrowing for developers, because raising capital for development of new projects remains a huge challenge. Current lending rates range between 12-14%, and raising funds through other sources is even more expensive. The interest rates on lending to real estate developers should be brought down so as to help rationalize the cost of construction

Vinu S,

29th January 2015

Comment

This time there are many aspects that the Union Budget should address this year. Lets have a closer look. Expedited clearance, Regulation of construction material cost, single-window clearance, removal of multiple taxes that are associated with home purchase, Real Estate Regulatory Bill, Industry Status, Reduction in Lending Rates for Developers.

Samrat,

29th January 2015

Comment

Modi Government is ready to present the Union Budget for the financial year 2015-16 on 28 February. lets try to draw an analysis of Expectations vs Reality in the hindsight of 2014-15 Budget.

The real estate sector had several expectation from 2014-15 budget, some of them were fulfilled such as Reduction in Home Loan Rates, SOPs for Affordable Housing, Ease in FDI Investment and Clarity on REITs. Some of the expectation which were not fulfilled like Industry Status and Single-Window Clearance. Apart from these, the government provided certain add-ons to the real estate sector. These are Smart Cities, Reforms in PPP, Making SEZ effective, Measures for Urban Renewal and Development of New Expressway.

Vinu S,

29th January 2015

Comment