Earth Group, One of the leading real estate entities highlights that the third Union Budget announced by the Finance minister, Arun Jaitley on 29th February 2016 is favorable for the housing and construction sector. The sector has got the benefits of infrastructure status in the budget. Earth Group states that the tax concessions and relief announced in the budget will bring in cheer and will boost the realty industry. The company asserts that several rational measures have been proposed in the budget for next financial year to ensure flow of investments in the affordable housing and construction sector. These measures include the introduction of Public Utility (Resolution of Disputes) Bill to ensure streamlined institutional arrangements for resolving disputes in infrastructure related construction projects, PPP and public utility contracts and exemption of service tax for affordable housing measuring up to 60 sq. meters.
The proposal for 100% deduction on profits allowed for affordable housing projects approved during June 2016-March 2019 and completed in three years from approval will prove to be a great move. Earth Group highlights that the three major expectations of the real estate sector; the removal of DDT from REITs, increased HRA deduction, and boost to affordable housing by allowing 100% deduction on profits made by entities constructing them have been addressed in this budget. It has provided relief to the low income group and the mid segment of home buyers as Arun Jaitley has announced that the deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit the people living in rented houses.
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