Excerpts from the Article:
We examine the concerns of the builders and property buyers ahead of Budget 2021 and whether the macro-economic concerns that the finance minister has to deal with, will allow for any sops for real estate
Union Budget 2021-22: Developers’ expectations
- Industry status
- Investment subsidy for affordable housing
- Single-window clearances
- Reduced levies, along the lines of that in Maharashtra
- Availability of funds
- Longer repayment cycles
- Lower tax on raw materials
- Extension of the exemption from notional rent on unsold inventory to three to five years from the present two years after receiving the occupancy certificate.
Aditya Kushwaha, CEO and director of Axis Ecorp, says that the government should reduce taxes on rental earnings, extend the cap on PMAY interest subsidy and re-examine the timelines of measures that have already been unveiled. Extension of the standing moratorium period on home loans and RERA timelines must be re-looked, he adds. “Affordable housing is very likely to get another booster shot. However, the upcoming budget also needs to focus on the larger market. I am hopeful that the Union Budget 2021-22 will relax income tax norms, offer single-window clearances and GST reforms. Measures that ease the liquidity issues that are being currently faced by the sector, will boost investment in real estate,” says Kushwaha.