Union Budget in Real Estate : First Cut

By Accommodation Times News Services and Research Bureau

Nothing could have been expected more than what is proposed. Finance Minister in his Budget Proposals have few provisions for housing and Real estate as under :

1. “We have done it before, and we will do it again.” FM

2. we cannot do without FDI, FII and ECB

3. Rs.15184 crore provided Indira Gandhi Awas Yojana.

4. “Investment is an act of faith. We have to facilitate a greater environment for Investment especially from foreign players. : FM

5. Infrastructure Debt Funds encouraged. IDFCL and Asian Bank facilitated.

6. Road Construction authority established. 3000 kms of roads will be constructed in Gujarat, Maharashtra, Madhya Pradesh and Rajasthan.

7. Deduction under section 24 as to home loans for 1,50,000/- will have additional deduction of Rs.1 lakh and to be carried forward till 2016.

8. Delhi Mumbai Industrial corridor given budgetary allocations.

9. New Smart individual city planned in Gujarat and Maharashtra.

10. Bangalore Mumbai corridor provided for.

11. Chennai bangalore corridor provided for.

12. Major port decided in West Bangal at Sagar and Andhra Pradesh.

13. Rural Housing funds of 6 k crore established with National Housing Bank.

14. Rs.2 k crore provided for Urban Housing Fund with NHB

15. Only 42800 tax payers are earning Rs.1 crore and above p.a. in the country.

16. TDS of 1% is imposed on transaction above Rs.50 lakh in immovable properties except Agriculture land.

17. Duty on marble raised to Rs.60 per sq. mtrs

18. Sales Tax on property above 2000 sq. ft or Rs.1 crore or more, the abetment of 75% reduced to 70% hence the deduction to developers will be less and there will be more sales tax to be paid by the purchasers.
This will not apply to low cost housing or single units.

Higher tax on super rich negligible and will not have much impact, says Deepak Parekh

Gross borrowing higher than expectations, says Madhu Kela

Gross borrowing higher than expectations, says Madhu Kela

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