New launches un­der JDAs soon

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - – VAN­DANA RAM­NANI

With fi­nance min­is­ter Arun Jait­ley clar­i­fy­ing in the Bud­get that land own­ers will have to pay cap­i­tal gains tax at the time of com­ple­tion of a hous­ing project, more hous­ing launches are ex­pected through this route.

Tata Hous­ing Devel­op­ment Co Ltd, which pi­o­neered the joint devel­op­ment model, is hop­ing to launch at least three projects this year, along with mul­ti­ple phases in its cur­rent projects. Go­drej Prop­er­ties is also eval­u­at­ing op­por­tu­ni­ties in the seg­ment.

The re­cent bud­get pro­posal on JDA will help min­imise is­sues land own­ers face while pay­ing cap­i­tal gains tax in the year of trans­fer. Ac­cord­ing to the new pro­posal, for an in­di­vid­ual or Hindu Un­di­vided Fam­ily (HUF) en­ter­ing into an agree­ment for the devel­op­ment of a project, the cap­i­tal gains shall be charge­able based on the stamp duty val­u­a­tion.

“This move will help bring more land own­ers to part­ner with de­vel­op­ers like us, thereby lead­ing to more projects un­der the JDA route in the com­ing years,” says Brotin Ban­er­jee, man­ag­ing di­rec­tor and chief ex­ec­u­tive, Tata Hous­ing. “This step will im­prove land trans­ac­tions, bring in more sup­ply of land into the prop­erty mar­ket and en­cour­age more pri­vate ad­di­tional land own­ers to part­ner with branded de­vel­op­ers.”

Tata Value Homes Lim­ited, a 100% sub­sidiary of Tata Hous­ing, ex­clu­sively fo­cuses on the value and af­ford­able hous­ing seg­ment.

“We ex­pect to launch at least three projects this year, along with mul­ti­ple phases in our cur­rent projects,” he adds.

Terming the bud­get pro­posal as a “pos­i­tive devel­op­ment”, Mo­hit Mal­ho­tra, ex­ec­u­tive di­rec­tor, Go­drej Prop­er­ties Ltd, said the com­pany was eval­u­at­ing op­por­tu­ni­ties through this route.

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