By Mr. Sankey Prasad, Chairman and Managing Director, Synergy Property Development Services
The real estate industry laid down a lot of expectations from the interim budget. Although aspects such as infrastructure status to the industry, and structured single-window clearance among others, weren’t met, the Union budget 2019-20 in its entirety took into account a host of other issues aimed to propel the economy into a 10 trillion dollar economy. This is a positive sign.
The steps taken can percolate into direct & indirect benefits to the housing sector. The impetus on affordable housing is once again visible.
I believe the proposal to extend Income Tax benefits for affordable housing schemes, coupled with doubling NIL Income Tax slab from 2.5 to 5 lakhs, will definitely be an impetus to the affordable housing sector. Also, exemption of tax on notional rent, on unsold inventories up to 2 years will provide relief to the developers on the short term and will help them to focus on newer projects.