Real Estate- Union Budget 2017 India.
Real Estate – UNION BUDGET 2017 INDIA.
Finance Minister Mr. Arun Jaitley presented Union Budget on Wednesday,
Key highlights of the Real Estate & Infrastructure Sector.
The key area which got benefit is a affordable housing.
• Under the scheme for profit-linked income tax deduction for promotion of affordable housing, carpet area instead of built up area of 30 and 60 Sq.mtr. will be counted.
• The 30 Sq.mtr. limit will apply only in case of municipal limits of 4 metropolitan cities while for the rest of the country including in the peripheral areas of metros, limit of 60 Sq.mtr. will apply.
• For builders for whom constructed buildings are stock-in-trade, tax on notional rental income will only apply after one year of the end of the year in which completion certificate is received
Capital gain tax some relief for immediate sellers.
• Reduction in the holding period for computing long term capital gains from transfer of immovable property from 3 years to 2 years. Also, the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property
• For Joint Development Agreement signed for development of property, the liability to pay capital gain tax will arise in the year the project is completed.
• Exemption from capital gain tax for persons holding land on 2.6.2014, the date on which the State of Andhra Pradesh was reorganised, and whose land is being pooled for creation of capital city of Andhra Pradesh under the Government scheme.
Infrastructure sector which is not affecting directly but indirectly to the Real Estate sector.
• For transportation sector as a whole, including rail, roads, shipping, provision of ` 2,41,387 crores has been made in 2017-18.
• Railway lines of 3,500 kms will be commissioned in 2017-18. During 2017-18, at least 25 stations are expected to be awarded for station redevelopment.
• By 2019, all coaches of Indian Railways will be fitted with bio toilets.
• In the road sector, Budget allocation for highways increased from ` 57,976 crores in BE 2016-17 to ` 64,900 crores in 2017-18.
• 2,000 kms of coastal connectivity roads have been identified for construction and development
• Selected airports in Tier 2 cities will be taken up for operation and maintenance in the PPP mode
• Proposed to set up strategic crude oil reserves at 2 more locations, namely, Chandikhole in Odisha and Bikaner in Rajasthan. This will take our strategic reserve capacity to 15.33 MMT.