The real estate sector was hard hit in the year 2018. A significant contributor to the country's economy with its ancillary industries, it creates jobs directly as well as indirectly. In the recent past, the external risk factors like that from the crisis in NBFC, the industry was faced with liquidity and funding problems apart from prevailing tax policies. In the interim budget, set to be presented on 1 February, the sector is hoping that its concerns will be addressed by the government.
According to Ashish R. Puravankara, Managing Director at Puravankara Ltd., the key budget expectations from the real estate fraternity are:
- No cap for loss from house property; The limit set-off for loss from house property of 2 lakh should be removed
- A roadmap to execute the 'infrastructure status' afforded to the industry in the previous budgets.
- Further extension should be given for availing benefits falling under Sec. 8O-IBA for Affordable Housing Scheme / Housing For All
- Differential GST rate for apartment value for more than Rs 7000 per sq. ft.
- Abolition of GST payable by the landowner in a Joint Development agreement
- Abolition of tax on the unsold inventory
- Abolition of MAT on adjustment due to Indian accounting standard (IndAS) implementation