What does the budget for FY 2016-17 hold for buyers and real estate developers? We examine

1. Positive push from FY 2016-17
Budget for Real Estate

2. Introduction
In order to give a much-needed boost, the finance minister Mr. Arun Jetley
prescribed a budget that is aimed to help the poor and also create more
entrepreneurial opportunities in the country. His ideas and the FYI 2016-17
budget are applauded by many people and experts alike. The tax relieves and
other various exemptions proposed in the budget is expected to give a sigh of
relief in the real estate industry of the country which was earlier going
through phase of slump. Let’s check out the impacts of the budget from both
the buyers and developers perspective.

3. Effect of the budget from the buyers viewpoint
 Now with the help of the proposal of excluding the houses of 645sq ft or
less from service tax can give the new buyers a sigh of relief and can save a
great deal of money for them. Also, it can bring new dimensions in
affordable housing plan.
 According to this year’s budget, the REIT will be exempted from the DDT
which can increase the scope of new investments in the real estate sector
and help to boost the industry.

4.  If one acquire a house worth Rs.50 lakhs and take a loan of Rs. 35lakhs
then he will be eligible for Rs. 50000 exemption. This move will
motivate the people to buy new homes and invest more in this sector.
 The newly stated rule of tax benefit in case of the under-construction
houses raised from 3 years to 5 years and also a raise in the HRA
deduction from previous Rs. 24000 to Rs. 60000 will help many people to
avoid the heavy burden of taxation and help to boost the industry as well.

5. Effect of the budget from the Builder’s viewpoint
 To boost the “housing for all program” the finance minister announces
that builders who are engage in the affordable housing construction they
can avail 100% deduction of profits in case of developing of houses less
than 60sq mts in the metros and 30 sq mts for the non-metros if started
and completed within the 3 years of time from the approval of the project.

6.  Apart from that the skill development programs for the constructions workers
and exemption of the excise duty for the readymade concrete mix along with the
concrete mix manufactured at the site, help to get the builders a host of new
benefits and more skilled workers in a job. The digitalization of the land records will
also help the builders in getting the true records of land titles in no time.

7. Other key initiatives
The keen interest of the government in making the real estate sector a bigger
one and showing interest in programs like 100 smart cities, affordable
housing and housing for all boosting up the morale of the investors and
developers alike. Though still there is no confirmed news about the Real
Estate Regulatory and GST bill which can infuse more interest amongst the
developer houses and thus with the help of this core industry several other
industries can also see new dimensions and more opportunity as well.

8. Read the full article on http://www.pinclick.com/blog/positive-push-fro
m-fy-2016-17-budget-for-real-estate/. If you are looking for flats for sale
in Bangalore without brokerage, log onto www.pinclick.com to explore
our wide range of apartments.