This Union Budget 2016 has been praised for being a growth-oriented and balanced budget that is going to benefit home buyers in more ways than one. New plans have been made for developing affordable housing options for people. This include incentivizing developers with complete exemption of Income Tax for constructing houses of 60 sq. meter area in non metros and 30 sq. meter area in metros.
A proposal has been made for levying zero service tax with such housing development projects and this is going to create large number of affordable housing options for people who are looking to buy homes in different parts of India. Such exemption of income tax is also going to be a motivating factor for the developers who will look forward to coming up with new construction projects.
The Finance Minister has also introduced a deduction of Rs. 50000 on the interest for loans taken up to INR 35 Lakh. This is great news for anyone looking to buy a home for the first time. No excise duty is going to be levied on the RMC that is produced at a construction site.
The Union Budget of this year has brought some important issues into focus that is going to greatly benefit the real estate industry. New changes that have been made in the new budget are going to make it a lot easier to invest in affordable housing projects. The government has taken an initiative to ensure housing for all individuals by the year 2022. The decision to exempt service taxes completely with many upcoming residential projects in metros as well as non metros has already been welcomed by people in various social groups. This strategy is particularly going to positively impact the middle class and lower income groups. While at one point of time it was rather difficult in India to find good homes without investing a fortune, the policies adopted in this new budget is going to change all of that for many people in this country.
However, there are still many experts who strongly believe that this budget leaves a lot of room for improvement. In fact, the general expectations from this budget in terms of real estate were actually quite high and only a small portion of it has been met. Apart from easing the taxes on home development, additional funds have been reserved for developing the infrastructure that includes the construction for road networks as well as setting up of numerous urban clusters.
Special care has been taken to evenly distribute affordable housing options across different cities. This is going to trigger affordable real estate development in Tier 1 and 2 cities as well as lead to the growth of smaller mushrooming areas in other cities. Direct Dividend Tax (DDT) has now been exempted from REITS which has made it possible for it to become efficiently functional. However, certain areas such as single window clearance and industry status are still needed to be worked on which could have greatly changed the face of real estate in India.
Amy Jackson is a freelance writer specializing in blog posts, press releases and web content for online businesses and she has used her years of experience in understanding the changing trends in Real Estate business and other industries. She is currently writing articles on many upcoming apartments like luxury condominiums for sale, luxury flats for sale in CV Raman Nagar, luxury flats for sale in Bangalore and more