By Dr Sanjay Chaturvedi
Accommodation Times News Services
“A roof for each family in India. The call given for ‘Housing for all’ by 2022 would require Team India to complete 2 crore houses in urban areas and 4 crore houses in rural areas.” these were the lines of Union Budget while Arun Jaitley wanted to cover all aspects of election manifesto of his party, it is a big news for millions of homeless citizens in India.
Those who wanted to invest in real estate and keep for longer period to have capital appreciation of 2000%, such investment will be dead investment after, if at all, government achieves the target of constructing six crore housing. When there will be no demand and plenty of housing supply in the market, next six years, real estate market will change. The policy of government will bring cheers to the affordable housing segment and mass housing.
Budget has allocated Rs. 22,407 crore for housing and urban development for the first year of such goal. Besides this, real estate affordability suffers a lot because of black money in real estate transactions. The budget provided thus ” As regards curbing domestic black money, a new and more comprehensive Benami Transactions (Prohibition) Bill will be introduced in the current session of the Parliament. This law will enable confiscation of benami property and provide for prosecution, thus blocking a major avenue for generation and holding of black money in the form of benami property, especially in real estate.” The Budget imposed penalty if an advance of Rs.20,000/- or more is accepted. The Budget said “With a view to curbing the generation of black money in real estate, it is proposed to amend the provisions of section 269SS and 269T of the Income-tax Act so as to prohibit acceptance or re-payment of advance in cash of ` 20,000 or more for any transaction in immovable property. It is also proposed to provide a penalty of an equal amount in case of contravention of such provisions. ”
The Real Estate Investment Trust (REITs) got a new treatment in this Union Budget. FM wanted it to be implemented and accepted that large funds are blocked in big infra projects. The Budget said ” A step was taken in the last Budget to encourage Real Estate Investment Trusts (REITs) and Infrastructure Investments Trusts (InvITs) by providing partial pass through to them. These collective investment vehicles have an important role to revive construction activity. A large quantum of funds is locked up in various completed projects which need to be released to facilitate new infrastructure projects to take off. I therefore propose to rationalise the capital gains regime for the sponsors exiting at the time of listing of the units of REITs and InvITs, subject to payment of Securities Transaction Tax (STT). The rental income of REITs from their own assets will have pass through facility.”