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  • Wednesday, February, 2019| Today's Market | Current Time: 08:04:51
  • A mixed bag of reactions by realtors on Interim Budget 2019

    Published on February 1, 2019

    Presented by the interim finance minister, the interim Union Budget 2019-20 has much to offer to the real sector. From lending a stronger back to the middle-class section of the country to providing some relief to the real estate developer the interim budget came with plenty of perks to offer to everyone.
    The major steps taken to provide impetus to the sector include; A full tax rebate to the individual taxpayers having taxable annual income up to ` 5 lakhs, Exemption on levy of income tax on notional rent on a second self-occupied house, the Income Tax Act will be increased from investment in one residential house to two residential houses for a taxpayer having capital gains up to ` 2 crore, and the exemption of income tax on notional rent from unsold houses to the next 2 years.
    On the principal steps taken by the government in the interim budget, here’s what the realty major have to say to about it:
    Manoj Gaur, MD, Gaurs Group & VP, CREDAI National
    “The move to increase income tax slab to 5 lacs is a very positive move. This is a helpful step towards increasing disposable income for an individual. Also, a home buyer preferring to buy a home in luxury segment, will be benefited with the rollover of capital gains under section 54 of the Income Tax Act.The move will further increase investments  in luxury segment thus giving a positive push to the real estate sector.
     
    Pradeep Aggarwal, Co-Founder & Chairman, Signature Global  and Chairman, National Council on Affordable Housing, ASSOCHAM 
    “The extension of tenure of registration of projects under affordable housing segment till March 31, 2020 under section 80 -1BA will now further boost the affordable housing segment thus giving relief to builders developing projects under this segment. Deduction of 100 per cent of profits derived from the development of affordable housing projects that have been approved on or after 1st June 2016 is a motivational step for the developers to focus on affordable housing segment thus speeding up the mission of ‘Housing For All 2022.”
     
    Rs 1 Lakh Crore Granted For Affordable Housing Days before Budget to boost affordable housing and achieve the vision of Housing for All by 2022, the government (Centre and State) have undertaken several initiatives, such as Pradhan Mantri Awas Yojana (PMAY) that aims to build 1 crore homes in urban and rural India by 2022.
    Mr. Dhruv Agarwala, Group CEO, Housing.com/Makaan.com/PropTiger.com
    Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to Rs 2 crore; which can be exercised once in a lifetime as well as no income tax on notional rent on 2nd self occupied house will promote buying of second house by buyers. Announcements on income tax relief on notional rent from unsold houses which has now been extended to 2 years, along with extension of section 80IBA to March 2020 are positive for developers. The move to give full rebate to middle class with income upto Rs 5,00,000 is a very positive move and will be helpful in increasing disposable income for a affordable housing buyer planning to purchase a real estate asset.
     
    Deepak Kapoor, Director, Gulshan Homz
    “The government’s decision to increase the income tax slab from 2.5 lakh to 5 lakh is an encouraging step for the home buyers thus increasing their purchasing power to buy homes. The step would further improve the market’s sentiment”
     
    Prateek Mittal, Executive Director, Sushma Group
    The interim budget of 2019, will boost the end user as well as the investor. Increasing income tax exemption limit to Rs 5 lakh from Rs 2.50 lakhs is going to help the middle class people to realise their dream to own their house and is a supportive move by the government towards increasing their disposable income. Secondly, no tax on notional rent on the second self-occupied house is another impressive step taken the government to motivate the investors. It will give them the opportunity to buy a second house as an additional asset. 
    Extension of exemption of income tax on notional rent from unsold houses to the next 2 years is going to bring relief to the developers.
     
    Overall this interim budget has been uplifting for the buyers and to some extent for the developers too. But, the long-standing demand of granting Real estate sector the industry status has not been met this time also.
     
    Ashok Gupta, CMD, Ajnara India Group
    “The step of increasing income tax exemption limit to Rs 5 lakh from Rs 2.5 lakhs will help people to fulfill their dream of having their own home. By making a buyer efficient enough to buy their home by maximizing their purchasing power will also boost the demand for affordable housing segment in the real estate sector.”
     
    Amit Modi, Director, ABA Corp, Vice President, CREDAI Western UP
    In term of real estate we believe that benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-2020, and benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to Rs 2 crore; which can be exercised once in a lifetime are the biggest take away from this year’s budget, in addition for existing home buyers income tax relief on Notional Rent from unsold houses which has now been extended to 2 years, along with  increase in TDS threshold on rental income raised from Rs 1,80,000 to Rs 2,40,000. In general we would like to congratulate the Finance Minister for a wholesome balanced budget, we believe that the move to increase income tax slab to Rs 5,00,000 is a very positive move. This is a helpful step towards increasing disposable income for a first time buyer planning to purchase a real estate asset. We also look forward to the outcome of Group of Ministers examining how prospective house buyers can benefit under GST, which we believe should not only benefit them on paper but practically as well.
    At the same time we would have preferred a Single Window clearance for all Real Estate Projects just like the ones extended for Movie Industry, and increase in exemption on interest on home loan to at least Rs 5,00,000 per annum.
    Kamal Taneja, MD, TDI Infracorp
    “The interim budget 2019 has been upto our expectations. The government’s decision on giving an industry status to the real estate sector is still awaited. Also, the provision of Single Window Clearance in real estate would have eased the process project completion. “
    Vikas Bhasin, CMD, Saya Group
    Interim Budget 2019 has been welcoming enough for the individuals. Where on one hand, the income tax slab has increased from 2.5 lakh to 5 lakh thus enabling end users to invest in residential and commercial segment. In the same way, the decision of paying no tax on notional rent on the 2nd self occupied house will be helpful for the investors thus giving them an option to invest on another property.
    Ashma Javed, Real Estate Expert 
    The noteworthy take away of Budget 2019 is the benefit of rollover of capital tax gains that are to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to Rs 2 crore. The move will boost the confidence of home buyers investing in the luxury segment. Also, no tax on notional rent on the second self-occupied house will give an opportunity to investors to buy a second house as an additional asset.


    Dhiraj Jain, Director, Mahagun Group
    “Extension of exemption of income tax on notional rent for unsold houses to the next 2 years is a relieving step for the developers. The step will in a way help the developer to focus on rest of his ongoing  projects”  
     
    Gaurav Gupta, Director, SG Estates and President, CREDAI Ghaziabad
    The interim budget 2019 has given a major boost to the real estate sector for capital gains reinvestment. The budget presented has been for the individuals thus nurturing their confidence and improving the market sentiment. The increment in the income tax slab and no tax on notional rent on the 2nd self occupied home is beneficial for an end user and investor respectively.
    Sagar Saxena, Project Head, Spectrum Metro 
    Increasing income tax exemption limit to Rs 5 lakh from Rs 2.50 lakhs is going to help the middle class people to realise their dream to own their house and also will give them the power to invest in commercial segment. Increasing the tax slab is a supportive move by the government towards increasing the disposable income of an individual.
    Rajesh Goyal, MD, RG Group
    “Though, the decision to extend the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years will give impetus to the real estate sector. But, the major step for real estate sector to get an industry status is still pending. The budget 2019 presented no doubt caters to the individuals, but with real estate sector getting a n industry status  would have brought more hopes of growth in the market.”
    Kushagr Ansal, President CREDAI Haryana, Director, Ansal Housing
    “The move by government to extend the tenure of registry of affordable housing by 1 year is another step to accelerate the affordable housing segment, thus boosting the real estate sector.”
     
    LC Mittal, Director of Motia Group
    “The interim budget 2019 has given a major boost to the real estate sector for capital gains reinvestment. The move to increase the income tax slab to 5 lakh is a very constructive step taken by the government. This is a helpful step towards increasing discretionary income for an individual.”
     
    “The benefit of rollover of capital gains under section 54 of the income tax act will be increased from investment in one residential house to two residential houses, for a taxpayer having capital gains up to rupees 2 crores will further decrease the burden on middle class.”
     
    Nakul Mathur, MD, Avanta Business Centre
    The Interim Budget 2019 presented has given impetus to the real estate sector. From lending a stronger back to the middle-class section of the country to providing some relief to the real estate developer the interim budget came with plenty of perks to offer to everyone.
    Vikas Sharma, CMD, Bullmen Ventures 
    The government’s decision to increase the tax slab to 5 lakhs is a constructive step for the real estate sector thus giving power in the hands of buyer. The positive move will be helpful in increasing disposable income for a buyer planning to purchase a real estate asset.