Pankaj Bajaj, President, CREDAI NCR.NEW DELHI:Budget 2018-19 has some incremental announcements for the real estate sector, according to Pankaj Bajaj, President, CREDAI NCR.
“The Finance Minister has amended section 43 CA and allowed for market transactions to happen upto 5% below the circle rate without deeming the deficit to be the income in the hands of the seller and the buyer,” he said.
“While we welcome the move it would have been better to do away with this provision entirely as the in many places the market prices are way below the circle rates . The budget announced the Affordable Housing Fund under NHB which will further catalyse investments in this sector,” he said.
India’s Finance and Corporate Affairs Minister Arun Jaitely said in his Budget speech that the government will “establish a dedicated Affordable Housing Fund (AHF) in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorised by the Government of India.
“However, the big benefit to housing would accrue from middle class having more disposable incomes in their hands. Stndard deduction has been increased. Senior citizens have been given tax breaks all this will increase the EMI bearing capacity of the middle class and improve the demand for housing,” Bajaj added.
“Finally, the imposition of LTCG on equity and equity funds will also improve the relative attractiveness of real estate as an asset class. Otherwise, for the last one year financial instruments were suckking up all the investments from the middle class,” he said.