Jaitley’s capital gains tax norms a big hit with Ggn realty sector

GURUGRAM: Facing a difficult situation with high number of unsold inventories, the Gurugram realty sector welcomed the Central government’s policy of changes in assessment of capital gains tax.

The city realtors stated that Finance Minister Arun Jaitley’s announcement of changing the assessment year of capital gain tax from 1981 to 2001 will be important in reducing high expenses incurred by the city developers.

The realtors also mentioned that not only developers but the policy itself will help property owners who have purchased assets before 2001.

Another announcement by the Central government to reduce the time period of committing capital gains tax from three years to two years was also well received by the Gurugram realtors.

They also mentioned that this move will provide an impetus to quicker sales in the realty market. However, professionals mentioned that lack of infrastructure and demonetisation have badly hit the realty sector in Gurugram and the Centre will have ensure more positive measures to improve the buyers’ sentiments. Realty professionals also added that all litigation procedures taking place around Dwarka Expressway should now be resolved quickly as it will help in expediting the development of the surrounding areas.

“Real estate sector in Gurugram has been going through an extremely gloomy period since the last four years. High interest rates have resulted in high levels of unsold inventories. Today, even after more than seven years, most of the sectors along the Expressway are still not used for residential purposes as most of the land there are under litigation. Coupled with this, the demonetisation has further affected the real estate sales in the city,” said Hardeep Kohli, a city realtor.

“Though there are various challenges that need to be dealt with, the real estate community in the city feel happy that at least the government has taken a step in coming up with some reforms in the capital gains tax which will help build the consumers’ sentiments.”

The developers also welcomed the move of the Centre’s decision of allowing notional rental income one year after the completion of the project.

Chetan Khanna, a professional working in a residential project in Golf Course Road said: “The decision to charge the notional rental income one year after the completion of a realty project can be another moment of reprieve for the developers.”