What Will Impact On the Budget 2017 of the Real Estate ?

Q: Plz share your thoughts regarding to residential projects around Kandivali in Mumbai.

Sunil Singh,

1st February 2017

Real estate News in Kandivali East, Mumbai

affordable housing

kalpataru kandivali

kalpataru kandivali mumbai

impact of budget 2017 in real estate

budget 2017

union budget 2017-18

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Replies (3)

Apart from that, a bold steps taken by govt calling Goods and Services Tax (GST) pitched for including land other immovable property - one of the key sources of black money creation. This GST will create a common Indian market, improve tax compliance and governance, and boost investment and growth.

shivadooti,

7th February 2017

Comment

I am agree with you Shivdooti...... Budget 2017 has also extended the time limit for construction from three years to five years. This will ensure better housing infrastructure. A 2bhk flats of 800 sq-ft in most parts of the country will now come under affordable housing category as builders generally set aside 25% of built-up area to arrive at carpet area.

pradyumanapte, Mumbai

7th February 2017

Yes, Change in the base year for calculation of calculation of indexation for long term capital gains shifted from 1981-2001. As a result, this ling term capital gain would reduce& in turn lower taxation.
Increase in size of affordable housing. Now the govt. has announced that in stead of built up area, carpet area would be applicable. In the last budget, we have seen that govt. has provided 100% tax exemption on profits, for developers constructing homes with built up area up to 30 sq-mt in the 4 metros and up to 60 sq-ft. in other cities.

Rishi Dev,

7th February 2017

Comment

Reduction in holding period will also boost the realty markets of India. As per the govt, long term capital gains from immovable properties has been reduced from 3 yrs to 2 yrs to qualifying for benefits of long term capital gains providing relief to investors.

pradyumanapte, Mumbai

7th February 2017

Hi Sunil,
The Real Estate Sector which was hit by Modi’s demonetization drive, has got the much needed boost in Union budget 2017-18 . Here are some of the key highlights pertaining to the real estate sector and their impact: 1) The affordable housing sector has been granted the infrastructure status which has been a long time demand from the industry.
2) National Housing Bank (NHB) will refinance individual loans worth Rs.20000 Cr. in 2017-18. This will give push to affordable housing companies.
3) One year tax exemption from national rental income from unsold inventory. This will especially help those holding huge inventory pileup.
4) Capital Gains is to be taxed only when the project is completed. This would definitely provide a great boost to unlocking land for development and buyers will get their flat possession on time and will reduce litigation matters.

pradyumanapte, Mumbai

7th February 2017

Comment

It means now affordable housing developers will now be eligible for several Government incentives, subsidies, tax benefits and most importantly institutional funding. The relaxation on long term capital gains, joint development agreements, tax rebates for builders will help reduce their tax liability too.

shivadooti,

7th February 2017