Industry Speak: Tax incentives could revive realty sector

Accommodation Times News Service

Kishore Bhatija, MD, K Raheja Corp: India is one of the most taxed real estate sectors in the world. With the forthcoming Union Budget, there are expectations of addressing various critical aspects, amongst which are tax incentives such as rationalizing of Income Tax slabs, easing tax reporting, tax exemptions or rebates of direct tax for individuals, whereby providing greater spending power for the consumers, which will indirectly benefit the economy and the sector. The introduction of GST will hopefully be positive in curbing cascading effect, resulting in lower incidence of tax, thereby reducing the total cost in the hand of buyers. These policy reforms will give further momentum to the realty sector.

Mudhit Gupta, CMD, EMGEE Group: I hope to see tax free slab to be raised from current level to about 5 lacs and a tax rate cut for personal and corporate taxes. The demonetization process has brought surplus capital into the system which will help increase cash flow into the PSU banks. The stamp duty charges should be reduced down to 2% from the current 5% to encourage more frequent transactions leading to higher revenue growth. We also hope the stamp duty should also be waived off for affordable housing in the Pradhan Mantri Awas Yojana (PMAY), housing for all. We are looking forward to some strategic policy changes which will accentuate the growth of the real state sector and the overall economy of the country in the next fiscal.”

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