In Budget 2017-18 speech a much needed thrust to the Indian real estate sector was given.
Here are few important Announcements on Housing Sector:
- Infrastructure status is given to Affordable Housing Sector
- Affordable Housing Defined: Projects with flats upto 30sqm in metros & 60sqm in other cities (carpet area).
The following will benefit developers and should bring down costs for Buyers:
- Better availability of loans for developers, with affordable housing getting infrastructure status.
- 100% deduction for profits in affordable housing sector, approved during June 16 – Mar 19 & completed in 3 years
- Exemption from service tax on construction of affordable houses
Announcements which effect Home Owners:
- Income of Rs. 2.5 lakh -Rs. 5 lakh to be taxed at 5 %. Additional surcharge of 10% for income between 50 Lakhs to 1 Crore
- Deduction for additional interest of 50,000 per annum for loans up to 35 lakh sanctioned in 2016 for first time home buyers, where house cost does not exceed 50 lakh
- Tax to be levied for unoccupied houses a year after getting completion certificate.
- Capital Gains Tax holding period reduced from 3 years to 2 years for real estate
- National Housing Bank will refinance individual loans worth Rs 20,000 crore in 2017-18.
- Govt will undertake important reforms by providing legal framework for dispute resolution and re-negotiations in PPP projects and public utility contracts, bringing in more development in urban neighborhoods.