February 2017 is the month when the Finance Minister Arun Jaitley will release the Union Budget for the year 2017. With its coming, the real estate sector is having a lot of expectations which will drive the growth of this industry in a positive manner. This year’s budget is particularly expected to give a push to affordable housing and encourage first-time home buyers. The wish list of Union budget 2017 is expected to improve the following-
- Tax paid on house loan:
It is expected that the tax will be deducted on the interest which has to be paid on house loan. This deduction is expected to go Rs 5 Lakh from Rs 2 lakh.
2. Infrastructure status:
Not just taking the affordable housing projects into consideration, but the entire sector would be the key for revival of the this industry.
3. Clarity on tax provisions:
All tax provisions that are related to affordable housing projects should be clarified.
4. Digital property database:
It is expected to create a nationwide digital property database and bring in the title insurance so as to help implementing the Real Estate Regulatory Act (RERA)
5. Exemption of Real Estate Investment Trusts (REIT) from stamp duty:
This exemption is expected to come at least for the initial few years.
The government has always remained keen on curbing black money so as to empower real estate. Likewise, in the Budget 2015-16, black money was targeted and heavy penalties were announced for any kind of property transactions that were made in cash. That year’s budget disallowed acceptance or repayment of any kind of advance cash done in the form of Rs 20,000 or more for the immovable property. Therefore, with such moving steps by the government in the past, new provisions are too expected with this year’s budget which will enhance the growth of real estate industry.