Indian finance minister, Arun Jaitley, in 2017-18 budget speech has given positive emphasizes to the Indian Real Estate Sector. He declared that the Affordable housing will be given Infrastructure Status, which is likely to result in bigger participation from the private players. This new implemented action – infrastructure status will act as a vital key to meet the objectives of housing to all by 2022. Involving private players in the field of real estate would provide better options for the middle-class and lower-middle class families, aiming to purchase their first property. In addition to this, Finance minister also announced that NH Bank (National Housing bank) will refinance individual loans worth Rs. 20, 000 crore in the year 2017 -18.
Important Key Highlights of 2017-18 Union Budget
ü Infrastructure status has been given to Affordable Housing.
ü By the end of 2019, one crore rural houses will be created.
ü National Housing Bank to refinance Rs 20,000 crore loans.
ü Rs 23,000 crore is allocated to Pradhan Mantri Awas Yojana
ü The carpet area of 30 and 60 sq meters will be applicable for affordable housing
ü Tax break of 1 year post receipt of the completion certificate, for the unsold stock
ü New FDI policy under consideration
ü No one will be allowed to do transaction above Rs 3 Lakh.
ü Rs. 64, 000 crore will be allocated to National highways.
At present, the Indian Government provides tax deduction upto Rs 2 Lakh on purchase of residential properties. In case, buyer has invested in a developing project, the tax sop is toppled to Rs. 30,000 (Especially if project takes more than 3 years for completion). Many experts have demanded the Government to increase the tax sop to Rs. 5 Lakh for first-time property buyers, and remove the clause of reduced tax benefits on investment in ongoing projects.
Infrastructure Status Given to Real Estate Sector - In Lime Light
The Naredco has demanded that “Infrastructure status” should be given to the real estate sector. Today, this anticipated budget unfolds the biggest surprise for the real estate sector by giving them Infrastructure status.
The finance minister has given a significant tax break to those earning between Rs 2.5 lakh to 5 Lakh (cutting their tax rates to 5% from the earlier 10%). Most importantly, surcharge of 10% is imposed for those whose annual income is Rs 50Lakh to 1 crore. The 15% surcharge on incomes above Rs 1 Crore will continue.
About Karia Developers:
Karia Developers, Top Real estate developers in Pune, has been given an Infrastructure status too. They are the best builders in Pune keeps no stone unturned to satisfy their customers.
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