By Accommodation Times Bureau
-Real Estate (Regulation and Development) Act, 2016: The Real Estate (Regulation and Development) Act, 2016 which laid down a regulatory framework. It aims to enhance transparency, bring greater accountability in the realty sector and set disclosure norms to protect the interest of all stakeholders.
-Amendment to the Benami Transactions Act: The Benami Transactions (Prohibition) Amendment Act, 2016 lays down stringent rules and penalties associated with dealings related to ‘benami’ transactions.
-100% deduction in profits for affordable housing construction: To promote affordable housing, the finance minister proposed 100% deduction in profits. These projects have to be approved during June 2016 to March 2019. Another condition was that the project should be completed within three years of the grant of approval.
-Change in arbitration norms for construction companies: To help the ailing construction sector, the government has cleared reforms including speedier resolution of disputes and the release of 75% of amounts that are stuck in arbitration. The government will now release 75% of amounts against margin-free guarantee in cases where arbitral awards have been given but have been contested.
-Implementation of Goods and Services Tax structure: Goods and Services Tax (GST) is a positive move towards simplification of Indian tax system. However, the real estate industry is still awaiting clarity on which items fall into “sin” and “common use” and whether they will attract 18%, or 12% possible tax rates. Additional clarification is also needed if the implementation of GST will subsume existing service tax and Value Added Tax (VAT), which are levied for under construction projects currently.