The Interim Budget 2019 has remained focused on the nation’s economic growth and lends a positive sentiment in the real estate industry.
The government’s initiative to reduce the GST burden on the taxpayer coupled with tax rebates on incomes up to INR 5 lakh will help improve the purchasing power of individuals. Moreover, the decision to ensure a competent system to impose and collect stamp duties at one place helps in streamlining and creating an efficient structure within the industry.
With no notional rent levied on second self-occupied homes and the capital gains up to Rs 2 crores which can be used for buying up to two houses, provide the much needed impetus to the demand for homes. The deductions announced under Section 80IBA have been extended to projects which will be registered by March 2020. This again paves the way for new launches.
India today is now the second largest start-up hub in the world, a promising development for the commercial real estate players. However, extending Special Economic Zone (SEZ) benefits till 2020 could have added further impetus in this regard. The focus on next-generation infrastructure to provide ‘Ease of Living’ shows the modernisation that the country has well adapted to and will thereby boost the real estate sector too.
This year’s budget has laid the foundation for the performance of real estate sector in terms of boosting economic growth and also enhancing infrastructure development.
Mr Sanjay Dutt is Chairman, FICCI Real Estate Committee and MD and CEO, Tata Housing Development Co. Ltd. and Tata Realty and Infrastructure Ltd.