Mister Arun Jaitely, the Finance Minister of India, through his speech on the Union budget 2017 has explicitly publicized the much-needed measures to organize and develop the real estate sector in India.
Mr. Jaitely announced that ‘Affordable Housing’ will be given ‘Infrastructure’ status, which is likely to catalyse the participation of private real estate stakeholders.
As per the Union budget, 2017, the carpet area of 60 square meters will be applicable for affordable housing instead of the built up area except for four metro cities where the carpet area of 30 sq. meters (in the case of municipal limits) will be applicable. This will indirectly benefit the home buyers in non-metro cities and peripheral areas of metro cities.
Giving relief to the home sellers, the government reduced the capital gain tax period from three years to two years. This means that the person who intends to sell his house after two years of purchase, have to pay less tax for the capital gained from selling the property.
The minister also announced that the notational tax on the unsold but completed real estate unit will be charged only after 1 year. The landowner of any real estate project has to pay tax on capital gains after the completion of the project. This will encourage more landowners to start developing projects with realtors leading to the increase in property supply which will prove beneficial for the purchasers.
Highlights of Union budget 2017 for real estate sector