PM Modi says Interim Budget proposals to help real estate sector

By : 360 Realtors

15 February, 2019

Prime Minister Narendra Modi stated during a CREDAI event that the Indian government has taken a number of steps in the last four years to make the real estate sector more transparent and accountable. The sector has been gaining the trust of aspirational customers with the introduction of new reforms and policies over the last couple of years.

Speaking at an event organized by the Confederation of Real Estate Developers Association of India (CREDAI), honourable Prime Minister Narendra Modi stated that demonetization and a series of other steps announced in this year’s budget were designed to boost the real estate sector. Construction and real estate sectors are considered the center of job creation and are responsible for creating employment in a number of sectors like cement, steel, and others. He posed the question about why the builders and the real estate industry did not get the due respect that they deserve, especially considering that this sector is vital for India’s growth. He added that developers need to adopt honest and transparent ways in conducting their business dealings to get the dividends that they are aiming to achieve.

Prime Minister Modi stated that the real estate sector acts as a catalyst for job creation. He further emphasized that the current government is supporting the industry; however, developers have to run affairs honestly and provide timely delivery of flats to home buyers.

The enactment of The Real Estate (Regulation and Development) Act, Benami Act and demonetization have all been aimed at comforting the aspirational customer and bringing transparency to the real estate sector. He added that demonetization has been highly beneficial to the real estate industry and will lead to the survival of the honest players only.

He added that the proposals in the interim budget will help the industry tremendously and will help in creating more income in the hands of people and encourage them to buy a second house. He added that the budget will get the benefit of rollover of capital gains under Section 54 of the Income Tax Act up to Rs 2 crore.

The government has also proposed to extend the tax period on unsold inventories from the current one year to two years and from the end of the year in which the project is completed. The budget has also proposed to extend the period of exemption from tax on notional rent on a second self-occupied house. It has also put forward that  there will be no tax-deducted at source (TDS) on house rents up to Rs 2.4 lakhs.

PM Modi added that the budget will provide a stimulus to the construction industry. He stated that the government is going to fulfil the ambitious target of providing housing to all by 2022. He added that 1.5 crore houses for the poor have already been built at twice the speed to realize the target of 2022.