The much awaited Budget 2017 was released on 1st February 2017 by the Finance Minister Arun Jaitley. This has assured a much needed push to the real estate sector of India. The budget has made it clear that ‘Infrastructure’ status will be given to the ‘Affordable Housing’. This will promote the participation of private players. The minister also said that the refinancing of individual loans will also be done by the National Housing Bank at worth of Rs 20,000 crore during the 2017-18 financial year.
One of the prime benefits states that the tax rate for incomes ranging between Rs. 2.5 lakh to 5 lakh has gone to 5% which was 10% earlier. Further, the taxpayers that fall in other categories will get to save Rs. 12,500.
The important facts of Union Budget 2016-17 that provides a push to the real estate sector are as follows-
- By 2019, 1 crore rural houses will be made.
- Rs 23,000 crore will be allotted under Pradhan Mantri Awas Yojana.
- Relief in tax will be given to real estate developers on unsold stock because the liability to fund capital profits will occur only in the year of project completion.
- Now the 30 and 60 sq meters carpet area will be applied instead of 30 and 60 sq meters Built up area for affordable housing.
- The holding period for immovable property to get capital gains tax has been reduced from 3 years to 2 years.
- The window that allots 3 year profit-linked benefits to start-ups has been increased from 5 years to 7 years.
- The new FDI policy will now be taken into consideration.
- To boost the infrastructure for transportation, Rs 2.41 lakh crore has been allocated
- 600 more districts will be added under Indra Awas Yojana
- Rs 3,96,135 crore is the total amount which will be allocated to the infrastructure sector.
- Rs 64,000 crore will be allocated for National Highways.
- The indexation of older properties for capital gains has been shifted from 01-04-81 to 01-04-2001.