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02 Feb 2017

What Budget 2017 offers the Real Estate sector

The Finance Minister introduced the Budget 2017 with the agenda of Transform, Energetic, and Clean India (TEC India). Given below are the Budget proposals that will specifically benefit the Real Estate sector.

  • A major reform is to bring the affordable housing sector under the definition of “Infrastructure”, which allows players in this space to avail applicable/prevalent benefits in terms of incentives, subsides and funding.
  • The completion period for affordable housing projects has been enhanced from three years to five years.
  • Measurement norms of affordable housing projects have been changed from built area to carpet area (30 sq. mts. for areas under municipal corporations and 60 sq. mts. for other areas).
  • Refinancing of Individual Housing Loans by National Housing Bank has been permitted.
  • Tax on notional rental income for Developers having stock-in-trade of unsold units is exempted for 12 months from the date of Occupancy/Commencement Certificate.
  • Reduction of gestation period for Long Term Capital Gains tax from three to two years.
  • Base year for indexation for the purpose of computing Capital Gains computation changed from April 1981 to April 2001 for all classes of assets including immovable properties.

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