NEW DELHI (INDIA): Omkar Realtors Director Gaurav Gupta said that Finance Minister impetus on housing for all by 2022 by way of given affordable housing an infrastructure status is indeed a welcome step and will bring in the momentum towards achieving the goal.
“The allotment of infrastructure status would also boost investment from private players in the affordable housing campaign. Capital gains on joint development agreement to be taxed only at product launch, 1 year tax exemption from national rental income from unsold inventory and reduction of long term capital gains tax period from 3 to 2 years provide respite to investors/ developers of real estate,” said Gupta.
“This helps especially those holding real estate inventory/ stock. This is a great move to providing tax relief to developers in the residential sector. Also with banks having surplus cash to lend to the home loan seekers, doubling the lending target to Rs 2.44 lakh crore will bring in more buyers to invest in real estate. Finally better re-financing of housing loans will further give a push to the affordable housing and real estate sector at large,” he added.
Today, the Union Minister for Finance and Corporate Affairs, Arun Jaitley while presenting the General Budget 2017-18 in Parliament today 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,” said Jaitley.
The Finance Minister Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister Narendra Modi.