Union Budget 2016 paves the way for growth in real estate sector, examines Janaharsha Group
The Budget 2016 has brought cheer to the real estate sector of the country. The budget has been formulated by keeping every sector of society in consideration. The Finance Minister Arun Jaitley has formulated the guidelines of the budget in a manner that would benefit the maximum, weaker sections or low income groups in particular.
Investment in real sector encourages endowments and low cost housing, eventually bringing relief to the ground level and mid segment of home buyers. This sparks job opportunities, savings and growth vis-à-vis contributory industries in league with realty sector, thus passing assurances to overall housing sector.
The proposal of 100% deduction to undertakings for construction of affordable housing will improve the standard of living and would facilitate the home at the bought for a song to many.
No service tax for houses built less than 60 sq. meters in non-metro and 30 sq. mt. in metro would give impetus to promote house catering to the people of middle order of which forms the maximum demand of home buyers in the country.
A heed for first time home buyers comes as a surprise in the form of an additional exemption housing loan interest of 50,000 provided value of house does not exceed Rs 50 lakh. Scrapping of dividend distribution tax on Real Estate Investment Trusts would help developers to raise funds, as this makes investments attractive for investors. Further, those living in rented houses will get a deduction benefit from Rs 24,000 to Rs 60,000 under Section 88G.
Another longing is lined up for closure where the Finance Minister has assured to pursue implementation of GST, reform measures pending before parliament.
Union Budget has this time veiled almost everything from the perspective of prosperity and growth towards realty sector. We wish to see gratification of another made promises of government.