Like the entire money-ban forsaken nation the most affected sector real estate is watching over the union budget, 2017. Will Jaitley meet up their expectation to provide national economy a much-anticipated boost to the country’s economy? Starting from the common man to the business tycoons union budget has snatched away market’s goodnight sleep.
The real estate sector is one of the most stirred sectors as the highest volume of cash transactions have been perked up in this sector. Now the entire real estate and its co-related small and big industries, builders, developer all are anticipating that the union budget of 2017 will serve the current market sloth a much called for thrust. According to the market experts real estate sector is confronting tremendous slowdown during this post demonetization move. Speaking about Kolkata the only revenue is coming from the realty sector is from low budget flats in Kolkata. Apart from the money ban declaration the past two/three years have been quite dreary in terms of buying/selling properties among the every big metro city of the country. Thus, the entire realty industry and shareholders are having all their hearts and minds donated to the union budget, 2017.
Reformation of income tax slabs supposed to be on top of the wish-list. At present, there are no tax deductions on income up to INR 2.5 lakh; on the other hand, most people are hopeful about at least a subsidiary increase of INR 50,000 as this would actually help many MIG. This would also get more inflow into the market which would generate positive buyers’ sentiment for property investment. For additional the tax release presently, under Section 80C you are eligible for a tax deduction of INR 1.5 lakh per year. Now the expectation is that this deduction would be hiked to INR 2.5 lakh per annum.
The real estate sectors has clamored for mulling over the market condition and augment the return to at least INR 5 lakhs which they consider would mirror the high prices of properties and related raw materials of the very sector. Passed 10 years, property prices across the country have raised to a very high level, so has increased the cost of construction, whereas the income level wasn’t parallel. The real estate sector has put that the principal value and interest paid as a part of the home loan; the return and the payback given on the loans should be allied so that the taxpayer could profit from them and increase savings. Under the provisions of Sector 80C, INR 1.5 lakh can be deducted from a tax payer’s total income if he invests in tax saving investments such as the Public Provident Fund (PPF), the Employee Provident Fund (EPP), 5-year tax saver deposits, NSC and postal saving plans. This is for the conventional investor. For investments that have higher risk involvement likely to gain a superior return with ELSS. ELSS investments are also part of Section 80C deduction. 80C also comprises the primary amount of the home loan. So maximum number of taxpayers just utilizes this principal amount to implement the deduction; a split deduction applied to the principal can boost the taxpayers for long-term savings.
Implementation of GST Act, bringing real estate under the attention of the GST Act might too benefit realty. Industry bodies have suggested that all charges, duties, taxes, cess such as land conversion charges, development charges, stamp duty, transfer duty, VAT, service tax etc are going to be fused. Complete implementation of RERA will make the sector more transparent through all its transactions. The government should finish appointments of the officials at the state level so that the implementation can happen right on. The single window clearance for projects has been a requirement from the industry on a constant basis now. The real estate sector looks forward to that the Union Budget 2017 will fulfill its expectations for market recovery and smooth business operatives.
_ By LNN (Liyans News Network)