Feb 15 2017 | Budget Talk

BUDGET REACTION | Ashish Puravankara, Managing Director, Puravankara Ltd

“True to its expectations, Budget 2017 has spelt out roadmaps and allocations across various initiatives of the Central Government and the Finance Minister has done an excellent job of managing the expectations. Initiatives to Real Estate industry has been spoken at length where the sentiments have been largely positive. The revisions to capital gains tax through reduction in holding period from 3 years to 2 years with a consequential revision of the base year to 1 April 2001. Payment of capital gains by landlord on Joint Development agreements in the year of completion is a welcome move. This will enable Real estate companies to pursue development without further infusion of capital in the acquisition. Revision of Built-up area to Carpet area is a great move to push for apartments in affordable housing category. The according of Infrastructure status to the Affordable Housing will boost investment in this category. Extension of period for carrying forward the MAT Tax from the existing 10 years to now 15 years is a welcome move. Furthermore, fiscal deficit for 2017-2018 has been estimated at 3.2% of the GDP which may lead to a lower borrowing programme, this is an excellent move and will go a long way to meet the country’s growth objectives. Largely, we were anticipating encouraging announcements for the industry and in the light of the upcoming RERA and GST implementation, we expect renewal of consumer confidence in the sector.”

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