Pre Budget: `Real estate sector is hopeful that a viable roadmap for sustainable growth will create employment opportunities across the industry'

by Ashish R.Puravankara, Managing Director, Puravankara Ltd

On the back of a series of structural reforms in the last two years, the Real Estate Fraternity is expecting some big sweeps at the union Budget 2019. With the industry now settling down and aligning itself with the new structural blueprint, the expectations from this budget are riding high for both developers and home buyers alike.

Several government initiatives have certainly boosted the affordable housing segment resulting in a substantial rise in demand for this segment. We hope in this budget, the Government expands its gambit of incentives beyond affordable segment to the industry at large to further amplify the momentum displayed in 2018.

Some of the key expectations of the industry from the budgets are:

• No cap for loss from house property: The limit set-off for loss from house property of 2 lakh should be removed

• A roadmap to execute the ‘infrastructure status’ afforded to the industry in the previous budgets.

• Further extension should be given for availing benefits falling under Sec. 8O-IBA for Affordable Housing Scheme / Housing For All

• Differential GST rate for apartment value for more than Rs.7000 per sq. ft.

• Abolition of GST payable by the landowner in a Joint Development agreement

• Abolition of tax on the unsold inventory

• Abolition of MAT on adjustment due to Indian accounting standard (IndAS) implementation

Real estate is the second largest employer in India after agriculture. The sector is hopeful that a viable roadmap for sustainable growth will create employment opportunities across the industry and eventually be a catalyst for a stronger India INC!