Bud­get 2017-18: re­lief for no­tional ren­tal in­come

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - An­shu­man Mag­a­zine ht­es­tates@hin­dus­tan­times.com

In the Union Bud­get 2017-18 an­nounced ear­lier this month, the fi­nance min­is­ter an­nounced the gov­ern­ment’s agenda to trans­form, en­er­gise and clean In­dia.

Com­bined with the var­i­ous pol­icy ini­tia­tives an­nounced last year, this year’s bud­get an­nounce­ments are ex­pected to help ease sup­ply and also ad­dress the de­mand is­sues im­pact­ing the af­ford­able hous­ing sec­tor in In­dia. Re­gard­ing the tax­a­tion mea­sures an­nounced in the bud­get, most mea­sures have been taken with the view to ease, and sub­se­quently spur trans­ac­tion ac­tiv­ity in the real es­tate sec­tor.

The sec­tor cheered the an­nounce­ment of ac­cord­ing in­fra­struc­ture sta­tus to af­ford­able hous­ing, a long pend­ing

re­quest by the in­dus­try. This is an im­por­tant step to­wards pro­mot­ing ac­cess to pri­or­ity lend­ing thereby, spurring sup­ply of low-cost hous­ing units across var­i­ous cities in In­dia. Re­lax­ation in area mea­sure­ment as well as com­ple­tion time­lines to seek tax ex­emp­tion were also wel­comed. Change built-up area to car

pet area: It is likely to in­crease the liv­able area, thereby at­tract­ing end-users. With re­gards to sup­ply, the in­crease in the area of the units will make it fi­nan­cially vi­able for de­vel­op­ers to par­tic­i­pate in the seg­ment.

With the af­ford­able hous­ing seg­ment be­ing ac­corded in­fra­struc­ture sta­tus, de­vel­op­ers will now be able to gain ac­cess to lower cost credit for longer tenures, which should im­prove the cash-flows of their projects. One year re­lief for no­tional ren­tal in­come for un­sold

hous­ing units: Ear­lier, de­vel­op­ers had to pay in­come tax on un­sold in­ven­tory in res­i­den­tial de­vel­op­ments. In a bid to ease the pres­sures on de­vel­op­ers in view of the pil­ing un­sold in­ven­tory lev­els, the gov­ern­ment has de­cided to make amend­ments to this sec­tion of the In­come Tax Act. Un­der the amended sec­tion, the no­tional in­come shall be con­sid­ered as nil for apart­ments com­pleted but not sold dur­ing the fi­nan­cial year, in which the com­ple­tion cer­tifi­cate has been ob­tained. The time pe­riod for cal­cu­la­tion of no­tional ren­tal on un­sold apart­ments will now be one year after com­ple­tion. This comes as a re­lief for de­vel­op­ers who have been pro­vided some lee­way to off-load their in­ven­tory. The au­thor is chair­man – In­dia & South East Asia CBRE South Asia Pvt Ltd

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.