Real Estate industry of India, which is reeling under the pressure of financially crisis and slump in home buyer’s confidence, is expecting the union budget 2019, to be presented on 5th July 2019, to give much drive to the slow moving sector.
In its last union budget of the 1st term, the ministry had provided some inducement to address the stress on both demand as well as supply side. But the real estate industry expected a lot more is needed to take the sector out of the clutched to the slump it has been in the last few years. So here are few of the key expectations of the industry from the upcoming (Presented on 5th July 2019) union budget
Some Important Expectations of the Industry are:
- No cap for residential property: the limit set-out for loss from residential property of 2 Lacs* should be closed at least for rented housing property
- Reinstall ITC (Input Tax Credit) and extending it to the commercial segment against Good Service Tax (GST) payable on rent of few projects or any other rental property
- Affordable Housing Scheme: Further extension should be given for availing benefits falling under sector 80 IBA
- Elimination of TAX on the unsold inventory
- Elimination of Good Service Tax (GST) pay by the landowner in a JDAs (Joint Development Agreement)
- Framing a National Rental Housing Policy in order to meet the target of Housing for all Indians
Overall, these measures would expectation, accelerate the pace of ongoing consolidation in the real estate sector and ultimately benefit the organised and compliant real estate developers.