Indian Real Estate Market Expectations from Union Budget 2019: Union Finance Minister Piyush Goyal is presenting the Budget 2019 on February 1. Like every sectors, real estate has its own expectations from the Modi government’s last budget before the Lok Sabha elections 2019. The central government in the Budget 2019 could announce a lot of things such as a single window clearance system. The central government should bring Real Estate under GST, and tighten the RERA rules to strengthen investor sentiment would be very welcome, said NoBroker.com. The Central government should raise the personal Income Tax exemption limit for interest on home loans and rental income would be much to the advantage of home-buyers and the sector as a whole, it said.
The NoBroker.com said although Goods and Services Tax (GST) has been introduced in real estate, it still requires further rationalization as additional levies like stamp duty and registration are still separately charged. They should be included within a single tax structure. Lowering the GST slab on under-construction properties to 5 or 6 per cent from the existing 12 per cent would usher in a lot of positive movement in the sector, the NoBroker.com said.
The other expectation from the Central government is the limit for principal repayment should be increased from the current Rs 1.5 lakh, especially for affordable housing or such principal repayments should be a separate limit outside Section 80C. The industry will also benefit if the tax on unsold properties which is introduced recently, is done away with because given the current sales cycle, inventories are lying inactive with the developer thereby adding more pressure to sell, NoBroker.com said.
Salaried class get House Rent Allowance (HRA) and can claim tax deduction. However self-employed people and those who draw lump sum amount can only claim up to Rs 5000 a month under section 80GG. The budget 2019 budget should remove this irregularity, NoBroker.com said.
The industry will have started with measures that reduce input cost and boost growth of the sector be it residential, commercial or infrastructure. In that case easing of land acquisition procedures and action of single window permission will be of great help to the industry, G Raghavan, CEO at Bhartiya City Developers Pvt. Ltd said.
Budget 2019 should certainly focus on reducing cost of input and encourage investment in the sector. This will over all help the real estate sector which in the long term will help in making the prices more affordable for the consumer, Raghavan.