NEW DELHI (INDIA): Lotus Greens Executive Director Tapan Sangal said that the granting of Infrastructure Status to affordable housing will give impetus to the accomplishment of the stated goal of “Housing for All”. The Infra status will provide access to easier financing and associated tax benefits for such projects.
“The change in norms for constructed area from built up to carpet will also result in many more projects coming under the affordable housing tag, especially in the four metros. The increase of time limit for completion from three to five years for availing 100% profit deduction for affordable housing will encourage more realtors to take up such projects,” he said.
“Some of the other benefits accruing to the segment included the lowering of the holding period for built-up properties for availing long term capital gains from 3 years to 2 years as well as granting respite in the notional rental income for property for a year. For the property being developed under JDA, one is now liable to pay capital gains tax only in the year of completion. The addressing of these small but crucial issues that were being demanded are likely to benefit the sector tremendously,”said Sangal.
“However one major disappointment was the non granting of industry status to the Real Estate sector,” he added.
Affordable Housing will be given Infrastructure Status
The Union Minister for Finance and Corporate Affairs, Arun Jaitley while presenting the General Budget 2017-18 in Parliament said that affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits.
The National Housing Bank (NHB) will refinance individual housing loans of about Rs. 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing. The Finance Minister Shri Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister Narendra Modi.
GST Council has finalised its recommendations on almost all the issues based on consensus
The Union Minister for Finance and Corporate Affairs,Jaitley said that the GST Council has finalised its recommendations on almost all the issues based on consensus after spirited debate and discussions.
The Finance Minister said that the Government on its part has promptly given effect to various provisions of the Constitutional Amendment Act, including constitution of the GST Council.
The GST Council held 9 meetings to discuss various issues relating to GST, including broad contours of the GST rate structure, threshold exemption and parameters for composition scheme, details for compensation to States due to implementation of GST, examination of draft model GST law, draft IGST law and the Compensation Law and administrative mechanism for GST.
He said the preparation of IT system for GST is also on schedule.
The Finance Minister Jaitley in his Budget Speech further said that the extensive reach-out efforts to trade and industry for GST will start from 1st April, 2017 to make them aware of the new taxation system.
He said that since the enactment of the Constitution (One Hundred and First Amendment) Act, 2016, there has been substantial progress on preparatory work towards ushering in GST which is by far the biggest tax reform since Independence.
“Several teams of officers both from the States and Central Board of Excise and Customs (CBEC)have been working to give finishing touch to the Model GST law, rules and other details, he added.
Jaitley said that the Government, through the Central Board of Excise & Customs (CBEC) shall continue to strive to achieve the goal of implementation of GST as per schedule without compromising the spirit of co-operative federalism.
He added that the implementation of GST is likely to bring more taxes both to Central and State Governments because of widening of tax net.
The Finance Minister Jaitley stated that not many changes have been proposed in current regime of Excise & Service Tax in the Budget proposals since they are to be replaced by GST soon.