Finance Minister Arun Jaitley, earlier this month presented the Union Budget in Lok Sabha. The FM kept it simple yet powerful by amending all the schemes as planned. Schemes introduced in the real estate sector particularly made this year’s budget a favorable one. Here are the top statements from some industry hotshots praising Budget 2017.
Shashank Jain, Partner, PwC India
“Two commendable steps taken with this impact of budget are the increase in qualifying unit area and provision of 5 years duration to complete. Both the steps have been taken considering the operational and practical aspects. The previously provided area was a little too less to be stated as a unit.” He adds that completing the project within 3 years was impractical considering that no separate procedure was maintained for approval on affordable housing scheme and certainty of the approval on time taken was missing.
Jagmohan Garg, Owner Of Mera Baba Group
Jagmohan Garg, a top realtor from Delhi, who owns the Dmall projects across the Capital, appreciated the move by stating it as a powerful strategy in favor of both the realtors and the buyers. “The support for affordable housing with consideration of carpet area while buying will greatly benefit the buyers in knowing exactly where their investment is going,” added Jagmohan Garg of Mera Baba Group.
Milind Kothari, Managing Partner & Head of Direct Tax of BDO India
“The move is appreciated for the clarity it would provide on taxation of Joint Development Agreement until the date the project completes. This would reduce litigation and act as a boost in disengaging the land for developmental purpose,” says Head of Direct Tax, BDO elaborates.
Shrikant Badiga, Director, Phoenix Lifespaces
The move is greatly appreciated. Affordable housing is a scheme worthy of being encouraged as it encourages ECBs and other good firms to venture into,” Director, Phoenix Lifespaces explained.
Prashant Tiwari, Chairman of Prateek Group
“According to the Budget, buyers will now be able to invest on projects based on the carpet area. This is a great step to keep buyers aware of the exact area that they will be buying.” He further adds: “The budget 2017 primarily focuses on infrastructural development which includes airports and roads that will simultaneously help boost the growth of the real estate sector too. The Chairman concluded by saying that the new FDI policy under consideration and tax relief given on unsold stock as liability to pay capital gains in the year of project completion, are expected to boost the real estate sector.
The real estate sector had long been benefitting the realtors greatly but Budget 2017 ensures that an equal benefit is shared by buyers too with the introduction of affordable housing and tax relief until project completion.