Ankur Dhawan, chief investment officer at online property portal PropTiger.com, also feels that the impact will be much stronger for the affordable housing buyers. “Not only [the] government is giving credit linked subsidy scheme for these buyers, but also leaving more money in hand to pay EMIs (equated monthly instalments) through increased tax savings.”
While presenting the Interim Budget, Goyal pointed out that to give impetus to the real estate sector, the government proposed to extend the period of exemption from levy of tax on notional rent on unsold inventories from one year to two years. Goyal was appointed interim finance minister a week ahead of the Budget presentation on February 1.
Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East, and Africa, CBRE—a commercial real estate services and investment firm—said, “Exemption on 100% profits for developers of affordable housing projects has been extended by one year, covering projects approved up to March 31, 2020. An extension of the tax holiday for developers on unsold inventory has also been provided. These are important measures for the recovery and further expansion of residential real estate in the country.”
“The changes to the capital gains from the sale of house property, being allowed to be invested in two properties instead of one and the 10-year window for registration of affordable housing projects for getting tax relief will provide a boost to the real estate sector and consequently to construction activity. We expect good tailwinds to the India growth story from these announcements in the Budget,” said Ranen Banerjee, partner, PwC India.