By Rohit Sharma
It is been seen that the Real Estate sector is applauding the Interim Budget 2019-20 which was presented on February 1 by Union Minister for Finance, Corporate Affairs, Railways & Coal, Piyush Goyal. This budget covered all the sector which were needed. When it came to tax Goyal said, individual taxpayers having taxable annual income up to Rs 5 lakh will get a full tax rebate and therefore will not be required to pay any income tax which. This decision will benefit the middle class whereas realty gained many things from this budget.
However, developers hope positive response from Group of Minister who is looking after GST in real estate. Here are the views of real estate players on Budget 2019-20
Dr. Niranjan Hiranandani, President – NAREDCO: “We should see affordable housing get a boost as a result of positives mentioned by the Hon’ble Minister Shri Piyush Goyal in his budget speech. Top of the list would be extended by a year of Section 80-IBA of the Income Tax Act, this will play a major role in helping achieve the target of ‘Housing for All by 2022’, and will incentivize the real estate industry to make more homes available under affordable housing, given that housing projects approved till 31st March 2020 will be eligible for this incentive.”
Nayan Shah, President, CREDAI-MCHI: “This budget for the first time in the history of Independent India could be termed as the Mid Income Household’s budget with an underlying socialist agenda. Keeping with the historic tradition of Interim Budget’s, Piyush Goyal has kept major announcements at bay and has also refrained from major populist measures which could have been announced, this being an election year. Overall, the budget has been pathbreaking and will bring a lot of relief for the mid-income taxpayer and some long-awaited cheer to the real estate industry.
Manju Yagnik, Vice Chairperson, Nahar Group: “The interim budget presented by the Finance Minister is a welcome move and provides major relief not only to the buyers in the low-income group and mid-segment but also developers at large. This will give a boost to the economy in the long run as it focuses on providing a roof to every human by 2022. The budget also gives a boost to affordable housing segment and resolves the challenges of unsold inventory. It is a great honour to know that we have become the 6th largest economy in the world and India is the fastest highway developer in the world. This explains the impeccable connectivity we are achieving on a daily basis. The vision of the Government to provide a roof, clean drinking water, proper sanitation services to all and constantly motivating people to lead a healthy life, is indeed a thoughtful move. As far as the real estate sector is concerned, it is a joyous moment for the homeowners, those dealing in rented houses and also those who are perturbed by unsold inventories. To ease the burden on people living in rented accommodation there will be no TDS applicable if the rent amount is 2.4 lakh which will now encourage people to go for rental housing as well.”
Ashish R. Puravankara – Managing Director of Puravankara Ltd: “This interim Union Budget has bought cheer to taxpayers and we welcome this move. An observed pattern in India is, increased savings bring people closer to their aspiration of becoming homeowners. This, of course, augurs positively for the Affordable Housing segment and will go a long way in addressing the housing issues of the nation.”
Rohit Poddar, Managing Director, Poddar Housing and Development Ltd: “This is a positive feel good budget which was expected given the 2019 Elections. It is extremely positive for the affordable housing sector and reinforced the Governments continuing the commitment to this important sector. Enhancing the ease of living and consolidating the real estate sector will further provide people with comprehensive social security and strengthen the government’s vision to make India a 10 trillion $ economy.”
Ravindra Pai, Managing Director, Century Real Estate: “This budget is largely centred on the middle class and boosting affordability that is evident by the full tax exemption of up to Rs 5 lakhs, and full tax exemption for those earning up to 6.5 lakhs if they make specific savings schemes investments, and various other savings schemes benefits. I am hopeful of some of this increased disposable income aiding the purchase of real estate and hence increased demand for the sector. No tax on notional rent on the second house could incentivise people for a second home purchase and exemptions on affordable housing segment will push more industry players to cater to that segment.
Veushank Mehta, Head corporate strategy & land acquisition, The Wadhwa Group: “It’s game-changer interim budget, it should propel consumption and act as a stimulus to the economy. It also gave impetus to Realty Sector by addressing the issue of Unsold inventory, waiving tax on notional rent income.”