The Industry Gets Speaking On the Budget 2019 -

The Industry Gets Speaking On the Budget 2019

The Industry Gets Speaking On the Budget 2019

The much-anticipated budget was out early this month when Finance Minister Piyush Goyal presented sixth and final budget 2019 of the Narendra Modi government’s before the polls. He highlighted the initiatives of the government and announced the farmer income support scheme of Rs 6,000 per year and many other schemes. Different industries like Logistics, real estate, infrastructure etc. had their set of expectations, now when it is out they have their opinions to put forth. The reactions of various industry leaders.

The Industry Gets Speaking On the Budget 2019
Vikas Oberoi, CMD, Oberoi Realty

Vikas Oberoi, CMD, Oberoi Realty– He said “This budget is very positive for the overall economy and will give a boost to the real estate and infrastructure industry. It has offered much-needed incentives to boost customer sentiments which bode well for the industry. Full tax rebate for income up to rupees 5 lakhs will only spur growth. Customers can now save on capital gains tax arising from the sale of a house by investing in two residential house properties as against one and no tax on deemed rent for up to two homes. Developers will get an exemption for two years from the date they receive occupancy certificate for the national income tax on housing inventory as against one year earlier and the government has extended the tax holiday for affordable housing by one year”.

 

 

Ankur Dhawan- Chief Investment Officer- PropTiger.com

Ankur Dhawan- Chief Investment Officer- PropTiger.com– “Government has given sufficient reasons for real estate to rejoice in this budget. Though there were many direct announcements for sector such as extension of Section 80IBA for 1 year, no interest on notional rent till 2 year of completion of project, reinvestment of capital gain in 2 houses rather than one and no tax on notional rent for 2 self-occupied houses, yet announcement of 100% rebate for income upto 5 Lakhs will have much stronger impact on real estate sales especially for affordable housing buyers. Not only government is giving credit link subsidy scheme for these buyers but also leaving more money in hand to pay EMIs through increased tax savings.”

 

CEO of Rentprop4U, Mr.Nagaraju M

CEO of Rentprop4U, Mr.Nagaraju M:  “The Government has placed the tax exemptions at the right time for rental homeowners, who do not have to incur TDS on rental income of Rs.2,40,000, which means that this would benefit owners earning a monthly rental income of up to 20k from the previous TDS limit of 15k Per month.  This also encourages home buyers to invest in new rental homes and enhances the greater possibility for reductions in unsold inventory. As startups expect provisions from the government that may not have been covered in this interim budget, however, the proposed income tax laws wave off for the better and support home rental startups as it paves way for the possibility of more rental home owners to step on board.”

 

Dinesh Jain- MD, Exotica Housing

 

Dinesh Jain- MD, Exotica Housing– The budget was realistic, for end users and focus was affordable housing. No tax for 2 years on unsold inventories is big relief for developers but ideally this should have been removed completely since it is beyond control. The budget has brought huge opportunities after RERA, for home buyers. Now home buyers will go for 2nd home because a home buyer can claim 2 homes self occupied, means 2nd home is now out of income category. In fact TDS limit on rental income has been extended up to 2.40 lakh so investors will rush for buying affordable units more to enjoy rental income! For investors, long term capital gain tax has been abolished under section 54 A, if the income has been used in buying 2 properties under 2cr. This is a big factor for home buyers who wants to shift from old property to new. For salaried class the budget is boon since income up to INR 7 lakh can be saved without paying any tax and we are expecting jump in demand of housing units. Industry status and singl

 

Dr Niranjan Hiranandani, Senior Vice President, Asscoham

Dr Niranjan Hiranandani, Senior Vice President, Asscoham- It is a directional budget with a clear intent of doing good to all the sections of the economy and the society, be it farmers, the industry and the common man. I am surprised to see how the Finance Minister has brought a slew of measures without ushering into an additional tax regime or caps. Indeed, he has presented ambitious programmes without widening the fiscal deficit. Its encouraging to note the Government’s 10-point dynamic vision to build India of future. Initiatives to diffuse farmers’ distress, labour reforms, boost to SMEs and MSMEs, push to  ‘Housing for All’ by giving extension by another year under section 80 IBA, boost to the infrastructure sector and relaxations to individuals through tax reliefs will empower each element of the economy. Liquidity is an issue in the economy and in the real estate sector too. We expect the Government to address the concern to make all these reforms effective to ensure ease-of doing business and ease of living.

Gaurav Gupta, Director, Omkar Realtors

Gaurav Gupta, Director, Omkar Realtors– The interim budget will go down in the history as a relief budget addressing all the pillars of the economy be it farmers, rural development, middle class, healthcare, women class and the older generation as well, with  benefits in terms of income & exemptions. To boost housing the  rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees which will ensure investment in real estate. However, under construction home buyers who were expecting GST rationalisation has been kept open-ended for now. Hope the slab will come down to 5 or 6 percent soon.” said Gaurav Gupta, Director, Omkar Realtors.

 

Amit Ruparel, Managing Director, Ruparel Realty

Amit Ruparel, Managing Director, Ruparel Realty- “The Union Budget 2019 is optimistic for the sector as it will provide ample opportunities for the home buyers to invest. Enhancing the exemption limit for the general category of individual taxpayers will increase the buying capacity of the potential home buyer thereby providing a boost to achieve ‘Housing for All.’ The Section 24 benefit of relieving second occupied houses from tax on notional income and the benefits of rollover of capital gains in two residential houses would help in reviving the real estate market. Raising the TDS threshold on rental income to Rs. 2.4lakhs and bank deposits to Rs. 40,000 will be a huge relief to the taxpayers. Extending the benefits under Sec 80(i)BA for one more year for all housing projects approved till the end of 2019-2020 will further boost the demand in real estate industry. However, we were hoping that the finance minister will grant infrastructure status to the housing sector to give a fillip to the industry. We were also expecting single window clearance which would have been beneficial for both home buyers and the developers. We are now looking forward to the decision of the GST council that will help in reducing the burden on the homebuyers and give the necessary impetus to revive the sector.”

Ondrej Kubik CEO, Home Credit India Finance Pvt. Ltd

Ondrej Kubik CEO, Home Credit India Finance Pvt. Ltd- The Finance Minister has presented a watchful and detailed sketch to perk up people’s spending power. The tax break to people under the 5 lakh salary bracket is likely to propel spending power. Digitisation in India has taken a revolutionary spin in the recent past with people becoming more tech savvy. The push towards digitalisation of payment and formalizing the credit market is a welcome step which will lead to more people coming under the legitimate financial system. With the government promising to set up 1 lakh digital villages in the next 5 years, it will inspire the smartphone & consumer lending sector for enhanced contribution and to be a part of this incredible growth trajectory of the nation.

 

Prashant Solomon Managing Director, Chintels India, Hon. Treasurer, CREDAI NCR and Convenor of CREDAI National (Media Committee)

Prashant Solomon Managing Director, Chintels India, Hon. Treasurer, CREDAI NCR and Convenor of CREDAI National (Media Committee)– The election year budget has brought some relief to the real estate sector and we can look forward to some better times considering that our sector is one of the biggest job providers. Real estate investments will receive an impetus due to the sops promised primarily in the form of tax relief particularly in affordable housing and in terms of the extension of notional rent exemption on unsold inventory. The Budget will also help home buyers as now the roll over capital gains has been raised from one house to house for an amount of Rs. 2 crores and income tax on notional rent has been exempted for second occupied house. Rental exemption on TDS has been exempted up to Rs. 2.4 lakh which is a welcome move.

 

Pankaj Jain, MD at Realistic Realtors

Pankaj Jain, MD at Realistic Realtors- Provisioning of Income Tax rebate upto 5 lac per annum reiterates the government’s commitment to bringing a large number of tax payers under the tax net. The tax rebate will facilitate greater money circulation through banking and economy channels. Real estate affordability and accessibility through increase in infrastructure development budget and housing under PMAY will bolster consumer sentiments in the realty sector, leading to rise in home sales in cities and their outskirts. GST needs to be simplified on a priority basis for easing real estate sector sentiments and expediting completion of under-construction projects. Demonetization has started showing a positive effect on the economy and with amended Income Tax rules, a large number of the unbanked population will be brought within the ambit of the organised banking framework move.

 

Rajat Rastogi – Executive Director, Runwal Group

Rajat Rastogi, Executive Director, Runwal Group– The budget is a positive one. Income tax exemption limit change, farm initiatives and other measures will ensure all segments of the economy including farmers, middle class, rural and urban get something. Changes done in capital gains tax limits, two year rollover benefits, removal of notional income on second home and increasing the benefits to two residential houses will hopefully give some impetus to the realty market. We were looking forward to some measures in the capital infusion and funding areas for real estate along with GST reforms also.

 

Suresh Garg- CMD, Nirala World

 Suresh Garg- CMD, Nirala World- This was a practical budget where common home buyers  were priority of govt. Now 2nd home of a home buyer is now out of tax bracket. I feel this is solid dose for housing sector after RERA and GST. In fact govt. has exempted tax on long term capital gain  and allowed to invest in 2  house/flats up to 2 cr. This has got a big catch since many want to sell old home and like to shift in new gated community or divide property in children. As expected, increased tax limit, INR 5.00 lakh ( upto 9.00 lakhs if flat is purchased with housing loan ) will boost saving and this will surely convert in to property investment after budget 2019. People will save more money and prefer to invest in another property. Unsold stocks are now tax free for 2 years instead of 1 and this is a big relief for developers but tax and financing part is still untouched.

CP Gurnani MD & CEO, Tech Mahindra

 

CP Gurnani MD & CEO, Tech Mahindra- With digital and renewable energy at its core, Budget 2019 is reflective of India’s commitment to foster the growth of an inclusive, sustainable  economy. It is great to see the Government’s vision align with our overall goal to promote the adoption of new age technology such as artificial intelligence, that will lay the foundation of a new, digitized India. The government’s decision to build 1 Lakh digital villages is a step in the right direction to bridge the urban-rural divide and as an industry, we are committed to making this vision come true – Make in India + Digital India = Modern & equitable India.”

 

Ravindra Pai, Managing Director, Century Real Estate

Ravindra Pai, Managing Director, Century Real Estate- “This budget is largely centered on the middle class and boosting affordability that is evident by the full tax exemption of up to Rs 5 lakhs, and full tax exemption for those earning upto 6.5 lakhs if they make specific savings schemes investments, and various other savings schemes benefits.I am hopeful of some of this increased disposable income aiding the purchase of real estate and hence increased demand for the sector. No tax on notional rent on second house could incentivise people for a second home purchase and exemptions on affordable housing segment will push more industry players to cater to that segment.

Extending the benefits under section 80-IBA  by a year to all housing projects that are approved till March 2020 is a good breather for all builders since approvals take time and this incentive can serve as an impetus to launch more affordable housing projects.The extension of exemption of tax on notional rent on unsold inventories two years will also help the builders’ cashflow.  I hope the decision(s) taken by the group of ministers appointed by the GST council will significantly reduce the GST burden on homebuyers and include stamp duty within the ambit of GST which have been a long standing demand of the industry. Overall, this budget shows some signs of the government moving towards its Vision 2030 of every family having a roof over its head.

Santosh Agarwal, CFO, AlphaCorp-Union budget 2019 has showcased a positive impact on real estate industry.  The biggest move in this year’s budget  is  the benefits under section 80-IBA of income tax act that has been extended for one year for all housing projects approved till march,2020. The most important and strategic decision that would change the scenario of real estate is the increase in capital tax benefit under u/s 54 by which the real estate investments would see a new elevation especially in Tier II cities. Also the changing the TDS slab from 1,80,000 to 2,40,000 will help the commercial real estate bloom and the buyer of commercial properties will have more lucrative returns on their investments. The highlight of the budget was to increase the income tax slab to Rs 5,00,000 which will encourage the prospective first time buyers to invest in real estate property.”

For more updates on the architecture and interiors industry visit: www.fortunestreets.com

more recommended stories