Brotin Banerjee, CEO and MD, Tata Housing Development Company, feels the budget is positive.
The interest subvention scheme of 1% on all individual housing loans upto Rs. 15 lakh for units costing up to Rs. 25 lakh is a welcome move and would give a boost to low cost housing.
The proposal to create a Mortgage Risk Guarantee Fund under Rajiv Awas Yojana will guarantee housing loans taken by EWS and LIG households and enhance their credit worthiness.
The investment linked deduction to businesses which develop affordable housing under a notified scheme is also a welcome initiative.
But the FM has not considered the real estate sector’s major recommendations such as status of infrastructure to the industry, extension of tax exemption/tax rebate under section 80 IB, ECB for real estate etc,”
The real estate sector would have been more contended to have got government’s notice towards the huge gap in demand and supply of mid market segment housing. While the sector saw sincere effort from the govt. towards low cost housing, meeting up with more urgent requirements towards removing archaic laws and bringing taxation to a reasonable level would have further brought good news for both the industry and the large mid market segment of the country.
On other fronts the government’s move to give the infrastructure sector a much needed boost by way of allowing FII’s to invest in infrastructure debt without a with-holding tax is a positive move. As infrastructure improves it will improve connectivity & give a boost to affordable housing.