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Top hits and misses of Union Budget 2021-22
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Top hits and misses of Union Budget 2021-22

Gautam Sharma Senior Research Analyst 99acres.com 5118Feb 01, 2021
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Budget 2021-22 for real estate: Industry Opinion
Budget in News
EXPERTS Speak
Niranjan Hiranandani, National President, NAREDCO
,National President - NAREDCO and MD, Hiranandani Communities

For the home buyer, the second extension of the deadline till 31 March 2022 for the additional Rs1.5 lakh tax deduction given on loans taken to buy a house in an affordable housing project is welcome.

JC Sharma, Vice Chairman & Managing Director, SOBHA Ltd
,Vice Chairman and Managing Director, SOBHA Limited

Some of the proposed laudable steps related to the housing segment will certainly give a fillip to the buyers of affordable homes as the time period of taking loans to buy such homes have been increased by another year i.e. - till March 31, 2022.

Lindsay Bernard Rodrigues, Director, Bennet & Bernard Group
,Director, Bennett & Bernard Group

While the government has furthered its commitment to the affordable housing sector, many issues remain unresolved for the real estate sector overall.

Manpreet Singh Chadha, Chairman, Wave Group
,Chairman, Wave Group

Retaining tax holiday on Affordable housing projects till March 31, 2022, and the proposal to make dividend payments to REIT and InvIT exempt from TDS is a much-needed relief for the real sector. 

Punit Agarwal, MD & CEO, Nirvana Realty
,Managing Director and Chief Executive Officer, Nirvana Realty

With the extension of the tax holiday on affordable housing projects, the real estate sector is likely to do well, given that demand too has been on the rise.

Surendra Hiranandani, Chairman and MD, House of Hiranandani
,Chairman & Managing Director, House of Hiranandani

Allotment of a massive capital expenditure corpus in order to enhance and support national highway projects, roads and other ancillary infrastructure will largely improve real estate over the next few years.

Ankush Kaul, President - Sales & Marketing, Ambience Group
,President, Sales and Marketing, Ambience Group

The focus of the Union Budget is to improve economic efficiency and infrastructure growth. Increased focus on infrastructure growth and capital expenditure will impact the overall growth of the real estate sector, too.

Kamal Khetan, Chairman and MD, Sunteck Realty Ltd
,CMD, Sunteck Realty Ltd.

For real estate, the move to extend the tax holiday available for the purchase of affordable houses as well as for the affordable rental housing projects is a welcoming move as it would further strengthen the confidence among both developers and homebuyers.

Milan Thakkar, CEO, Walplast
,CEO, Walplast

It is encouraging to see the Government has doubled its allocation towards the MSME sector by setting aside Rs 15,700 crore in FY22. Further, the extension of Rs 1.50 lakh deductions by one more year for affordable housing purchase would benefit the sector.  

Nishit Jalan, CEO, Grovy India Limited
,CEO, Grovy India

Providing income tax relief for home buyers on a second home will allow more people to invest in the sector and give a boost to holiday homes specifically.

Rajesh Binner, Founder and CEO, YieldAsset Real Estate Tech Pvt Ltd
,Founder and CEO, YieldAsset Real Estate Tech Pvt Ltd

We hope the budget would allocate more funds towards IT infra spends involving digitization of land records in urban areas. Govt should promote prop-tech companies by providing Credit Guaranteed loans.

Rattan Hawelia, Founder and Chairman, Hawelia Group
,Founder & Chairman, Hawelia Group

This year, the Government should ensure a resolution plan for the halted projects across the nation. We appreciate the introduction of stress funds but would also want to see the Government come up with an action plan for the consolidation and co-development of these projects.

Tanuj Choudhry, Chief Business Officer, HomeLane
,Chief Business Officer, HomeLane

From a start-up ecosystem perspective, there is a need to promote priority lending to aid ease of doing business. There is a need to reconsider the personal tax bracket to give more liquidity to consumers, as well as better benefits under section 80C.

Ashish Bhutani, CEO, Bhutani Group
,CEO, Bhutani Group

The growth of the real estate sector is marred by procedural delays which escalates the project cost. To facilitate faster clearance, the Government should announce a single-window clearance system as well.

Niranjan Hiranandani, National President, NAREDCO
,National President - NAREDCO and MD, Hiranandani Communities

Import substituting products that attract new investments for manufacturing in India should be kept outside the ambit of the Free Trade Agreement (FTA). Industries generating employment for more than 50 people should be treated as a high priority sector. 

Kamal Khetan, Chairman and MD, Sunteck Realty Limited
,CMD, Sunteck Realty Ltd.

The primary priority must be to uplift buyer sentiment. The Government must simultaneously provide adequate tax relief to those stuck with incomplete projects, while paying pre-EMIs regularly without any tax relief.

Rajat Goel, Joint MD, MRG World
,Joint Managing Director, MRG World

Many NPA projects and those facing bankruptcy proceedings under NCLT are to be included in the special funding window which will get investments from institutions like LIC and SBI to take the corpus to the proposed Rs 25,000 crore.

Pradeep Aggarwal, Founder & Chairman, Signature Global
,Founder and Chairman, Signature Global

In affordable segment we expect that government should seriously look into the issue of raw material cost and land prices. To meet the burgeoning demand,  there should be state-wise policies to meet the target of 'Housing for All'.

Manoj Gaur, MD, Gaurs Group
,Vice President CREDAI-National & MD, Gaurs Group

There is an expectation from the Union Budget 2020-21 that the Government may cut personal income tax and if materialised, this will certainly boost the economy as well as the real estate sector.  

Gaurav Bhalla, MD, Vatika Hotels
,MD, Vatika Hotels

The upcoming budget is expected to focus on reviving both consumer and investor sentiment in the real estate sector. Besides the slashing of GST rate on properties developed for leasing, ensuring tax rationalization on REITs is important.

Santosh Agarwal, CFO, AlphaCorp
,CFO, AlphaCorp

If implemented, the grant of industry status would raise low-cost loans within the system and the benefits would be passed on to the consumers. The sector hopes for the quick implementation of AIF.

Yash Rane, Founder, Chizel
,Founder, Chizel

We are expecting a 9 percent GDP growth and that is not easy. GST has hampered the cash flow of SMBs, thereby affecting their buying power. The Government should enable monthly filings and quarterly GST payments. 

Pankaj Kumar Jain, Managing Director, KW Group
,Director, KW Group

Real Estate is one of the largest job-creating sectors in India. But, today it is the most unorganized and distressed sector. This industry is having huge expectations from the upcoming Union Budget of 2020.

Chintan Sheth, Director, Ashwin Sheth Group
,Director, Sheth Group

The Government’s initiatives such as the National Infrastructure Pipeline would definitely help push the economy ahead by creating employment opportunities. For real estate, we look forward to ‘infrastructure status’ for the entire sector.

Pankaj Pal, President (Business Development & Strategy), AIPL
,President (Business Development & Strategy), AIPL

While the GST rate on under-construction properties was reduced to 5 percent in 2019, ITC benefits should be included in GST for under-construction homes, a great incentive to lower property prices and make under-construction homes attractive.

Ravish Kapoor, Managing Director, Elan Group
,Managing Director, Elan Group

‘Industry Status’ is a long due demand which will help in raising funds thus we are expecting an announcement in this regard. The government would move ahead with the setting up of a single-window clearance system.

Rahul Singla, Director, Mapsko Group
,Director, Mapsko Group

The Government should exempt organisations engaged in real estate business from the burden of tax on notional rental income or should extend the period of one year to five years.

Rajan Bandelkar, President, NAREDCO (Maharashtra)
,President, NAREDCO, Maharashtra

Rationalisation of taxes and premiums is another area of improvement where stamp duty charges can be included in the GST rate. The sector needs a one-time subvention scheme and restructuring of realty sector loans.

Anshuman Magazine, Chairman, CBRE
,Chairman - India and South East Asia, CBRE

Govt. should expedite approvals and clearances, provide incentives to aid the use of technology to allow faster construction and launch some skill development programmes specifically aimed towards real estate.

Ashok Gupta, CMD, Ajnara India
,CMD, Ajnara India Ltd

There is an urgent need for the Government to support the developers. We are eagerly looking forward to the allocation of industry status to the real estate sector. Additionally, steps in the direction of single-window clearance under Ease of Doing Business will tremendously help the industry.

Ashish Bhutani, CEO, Bhutani Group
,CEO, Bhutani Group

We expect the Government to come up with some positive developments for the sector. A vital reduction in the interest rates will spur a drastic improvement in the existing liquidity crisis and will ensure money flow in banks and NBFC's.

Amit Modi, Director, ABA Corp
,Director, ABA Corp and President (Elect), CREDAI Western UP

Single-window clearance for realty projects, increase in the limit of tax deduction for housing loans and allotment of industry status to real estate are some of the reforms that we are looking for.

Amit Ruparel, Managing Director, Ruparel Realty
,Managing Director, Ruparel Realty.

In the upcoming Union Budget announcement, we are hopeful that the Finance Minister will grant infrastructure status to the housing sector which will be encouraging for the developers. 

Ashok Mohanani, Chairman, EKTA World
,President-Naredco Maharashtra and CMD, Ekta World

The budget majorly requires discussing the key issues of high unemployment rate, challenges such as the NBFC crisis and Agrarian crisis. There is additionally a need to relook at the tax structure to reduce the burden and increase the disposable income. 

Rohit Poddar, Managing Director, Poddar Housing and Development
,Managing Director, Poddar Housing and Development Ltd.

The economy needs an urgent impetus and revival of the real estate sector. A significant reduction in the interest rates will spur a drastic improvement in the existing liquidity crisis and will ensure monetary flow in Banks and Non-Banking Financial Companies (NBFC).

Manju Yagnik, Vice Chairperson, Nahar Group
,Vice Chairperson, Nahar Group

We expect the realty sector to witness a complete revival post the announcement of the Budget 2019. Most importantly, there is a need to increase the financial limits extended to the developers in order to solve the current liquidity crunch faced by the industry.

Niranjan Hiranandani, President, NAREDCO
,National President - NAREDCO and MD, Hiranandani Communities

The expectations of the industry revolve majorly around addressing the present liquidity crunch. Quick corrective steps should be undertaken by the Apex bodies and the Government to pump in enough liquidity in the system. 

Gaurav Gupta, Director, Omkar Realtors
,General Secretary, CREDAI-Ghaziabad & Director, SG Estates

The rollover of capital gains tax on the sale of houses has been increased from 1 to 2 houses will ensure investment in real estate. However, under-construction home buyers who were expecting GST rationalisation have been kept open-ended for now.

Ramesh Ranganathan, CEO, Bombay Realty
,CEO, Bombay Realty

By allowing full tax rebate for individuals with income up to Rs 5 lakh and with additional deductions available on home loans, NPS, education loans, and medical insurance, it provides more in the hands of the middle-class taxpayers who now have the power to better manage their finances and investment in their dream homes. 

Ashok Mohanani, Vice President, NAREDCO
,President-Naredco Maharashtra and CMD, Ekta World

The two-year relief for notional tax on unsold properties and benefits u/s 80 IBA has increased to one more year-2020 are welcome moves and will help developers given the current industry consolidation post-RERA.

Amit Wadhwani, Co-founder, Sai Estate Consultants Chembur Pvt Ltd
,Co-Founder, Sai Estate Consultants

Extending the benefits under Section 80-IBA of the Income Tax Act for one more year will surely lead to a rise in end-use consumption of homes. Secondly, an extension on the period of exemption from levy of tax on notional rent, on unsold inventory from one year to two years, is a welcome move for the builder community.

Rattan Hawelia, Founder & Chairman, Hawelia Group
,Founder & Chairman, Hawelia Group

Exemption on tax on second self-occupied house, capital tax benefit u/s 54 from one residential house to two, increase in TDS threshold on rental income will surely boost the housing demand.

Sankey Prasad, Chairman and Managing Director, Synergy Property Development Services
,Chairman and MD, Synergy Property Development Services

I believe the proposal to extend Income Tax benefits for affordable housing schemes coupled with doubling NIL Income Tax slab from Rs 2.5 to 5 lakh will definitely be an impetus to the affordable housing sector. Also, exemption of tax on notional rent, on unsold inventories up to 2 years would provide relief to the developers.

Shailesh Puranik - Chairman & Managing Director, Puranik Builders Ltd
,Managing Director, Puranik Builders Pvt. Ltd.

The tax amendments introduced to reduce the burden on the middle-class taxpayer by providing tax rebate to citizens earning up to Rs 5 lakh per annum is expected to make home buying easy, especially for first-time homebuyers. Additionally, the extension of one year on income tax on notional rent from unsold houses and no tax on notional rent on the second self-occupied house is expected to provide respite to the realty market.

Niranjan Hiranandani, President, NAREDCO
,National President - NAREDCO and MD, Hiranandani Communities

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, and relaxations to individuals through tax reliefs will empower each element of the economy.

Shishir Baijlal, Chairman and MD, Knight Frank
,Chairman & Managing Director, Knight Frank India

Abatement for land should be increased to 50 percent. The single-tax regime in India ushered in additional cost pressure on real estate.

RK Arora, Chairman, Supertech
,Chairman, Supertech Ltd

We also hope that the government reduces the GST rate applicable to the housing segment, as it would be an ideal boost for the sector. An industry status for the real estate sector is another request.

Rajeev Talwar, Chairman, NAREDCO
,CEO, DLF Ltd.

The scope of Section 80IBA of IT Act 1981, which allows a deduction equal to 100 percent of gains derived from the affordable housing project, should be widened by bringing all categories of affordable housing meant for EWS, LIG, MIG-I and MIG-II under its purview.

Anil Saraf, CMD, ASF Group
,Chairman, ASF Group

The reduction in GST rate would help millions of home buyers and the real estate industry. It will also benefit the entire value chain dependent on the construction sector, which is a major contributor to India’s infrastructural growth.

Aakash Setia, Director, MTPL
,Director, MTPL

With Budget 2018, the government continues to boost the affordable housing sector by setting up an affordable housing fund under the umbrella of the Pradhan Mantri Aawas Yojna, which will give impetus to the growth of industries ancillary to the real estate sector. 

Rajesh Mhatre, CEO - Real Estate, Vascon Engineers Limited
,CEO - Real Estate, Vascon Engineers Limited

The real estate sector is the backbone of the economy and with the government’s focus on affordable housing in Budget 2017-18, we were expecting some announcements on relaxation in the interest rates, reduction in GST or providing an industry status for the real estate sector which, unfortunately were not made this time. 

Amarjit Bakshi, Managing Director, Central Park
,Founder & MD, Central Park

We anticipated the government to further reinvigorate the industry by way of lowering the  GST rates, allowing single window clearance and affording an industry status to the real estate sector. These changes would have contributed positively to hasten the recovery of the industry.

Amit Modi, Director, ABA Corp and Vice President, CREDAI Western UP
,Director, ABA Corp and President (Elect), CREDAI Western UP

We appreciate the government’s impetus on the development of overall infrastructure as it will also bring a boost in the real estate sector. Although, the government has missed out a big step to raise the limit of tax deduction for housing loans.

Abhishek Bansal, Executive Director, Pacific Group
,Executive Director, Pacific Group

The Government has shown keen interest towards enhancing the connectivity and infrastructure in the country by proposing an amount of Rs. 50 lakh crores. Agriculture sector was the biggest gainer.

Pradeep Aggarwal, Co-founder & Chairman, Signature Global
,Chairman, Parsvnath Developers

Proposal to open up an affordable housing fund will greatly benefit in the long run. Announcement of development of new roadways across the nation will allow the untapped regions to develop.

Dhiraj Jain, Director, Mahagun Group
,Director, Mahagun Group

This Union Budget has come out with a mixed bag for the realty sector. Apart from affordable housing segment and infrastructure development, nothing much has been presented for the realty sector.

Gaurav Gupta, General Secretary CREDAI-Ghaziabad & Director, SG Estates
,General Secretary, CREDAI-Ghaziabad & Director, SG Estates

Union Budget 2018-19 has stressed a lot upon developing infrastructure and creating a pool of job opportunities. The proposal of development of roads and upgrading rural infrastructure will bring up the Tier 2 and 3 cities of India on the realty map.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz
,Former President - CREDAI Western UP & Director, Gulshan Homz

Union Budget provides a benefit to MSME by extending the corporate tax of 25% for companies with an annual revenue upto Rs 250 crores. Reduced tax burden on corporates might allow real estate to see new start ups and job opportunities.

Manoj Gaur, Vice President CREDAI-National & MD, Gaurs Group
,Vice President CREDAI-National & MD, Gaurs Group

Government’s target to achieve housing for all by 2022 saw a boost for the affordable housing segment, where an affordable housing fund has been proposed. Heavy allocation of funds towards infrastructure upgradation will help.

Anuj Puri, Chairman, ANAROCK Property Consultants
,Chairman, ANAROCK Property Consultants Pvt. Ltd

The allocation of Rs 5.97 lakh crore on infrastructure spending is a welcome move, though we need a massive push to ensure that the country’s infrastructure meets global standards. 

Mayur Shah, Managing Director, Marathon Group
,MD, Marathon Group and Immediate Past President, CREDAI-MCHI

Corporate tax reduction for MSME will be good news for developers and 10 percent tax has been charged on capital gain, may bring more investments to the real estate, as it’s a level playing field with equity market.

Rohit Gera, Managing Director, Gera Developments
,MD, Gera Developments Pvt. Ltd

The introduction of long-term capital gains tax on equities, however, will be positive for real estate.  Typically a 3 year indexed effective tax for real estate works out to approx 10% equivalent to the same tax payable on equities.  The LTCG tax on equities, therefore, will push investors towards real estate.

Sameer Nayar, CEO, BuildSupply
,CEO, BuildSupply

The boost for affordable housing is commendable. The country has a serious shortage of housing units and this will go a long way in addressing that. There is a dire need to pace-up given the intense focus on affordable housing & technology being a core enabler of these grand infrastructure schemes.

Sachin Bhandari, CEO, VTP Realty
,CEO, VTP Realty

The Finance Minister announced that the Centre will create a dedicated affordable housing fund in collaboration with the National Housing Bank. Government’s initiative to focus on both rural and urban housing will further help in accelerating the growth of real estate in our country.

Mukund Patel, Managing Director, Rutu Group Companies
,Managing Director, Rutu Group of Companies

The Budget’s affirmation to affordable housing is a positive step. The affordable housing fund can also act as a stimulus for the real estate industry. Furthermore, the tax incentive for corporates will also provide a fillip for the industry as the added liquidity can free up resources to further consolidate the growth of the industry.

Akshay Taneja, MD, TDI Infratech Ltd
,MD, TDI Infratech Ltd

The government must ensure provisions for upgrading tier 2 and 3 cities along with decisions for infrastructural development and strategic connectivity between them. With the saturation of tier 1 regions, tier 2 and 3 cities must be next in line for urbanisation.

Rohit Gera, Managing Director, Gera Developments & VP, CREDAI - Pune Metro
,Managing Director, Gera Developments & VP, CREDAI - Pune Metro

There are a number of positives for the realty sector such as the reduction of holding period for long term capital gain as well as clarification on the date of tax in case of joint development. Unfortunately, the steps taken will not be enough to kick start the sector.

Anand Piramal, Executive Director, Piramal Group
,Executive Director, Piramal Group

It is heartening to see affordable housing get infrastructure status, which along with the increased completion timelines will significantly pave the way for ‘Housing for All’ to become reality by 2022. 

Sachin Sandhir, Global Managing Director-Emerging Business, RICS
,Global Managing Director-Emerging Business, RICS

The Budget 2017 broadly focusses on the rural economy, infrastructure, affordable housing, employment, digital economy and fiscal discipline. We believe that it is a fairly balanced Budget.

Getamber Anand, President – CREDAI National
,President – CREDAI National,

Infrastructure Status to affordable Housing, additional refinance of Rs 20,000 crore from NHB and lower interest rates reinstate the govt’s intent to enable access to cheaper capital.

Dharmesh Jain, President, MCHI-CREDAI and CMD, Nirmal lifestyle.
,President, MCHI-CREDAI

Post radical financial reforms, tax reforms & rationalisation are the need of the hour. Increasing tax deduction limits under 80C and for first time homebuyers will be major confidence boosters.

Century Real Estate
,MD, Century Real Estate

We hope the term ‘affordable housing’ is clearly defined and also accorded "Industry Status" this year. We would also like to see more spends and concrete steps towards digitisation of land/property records.

Ajmera Realty
,Director, Ajmera Realty

To boost demand in the realty sector, tax deduction limit for housing loans should be increased. Tax benefits for the interest on housing waiver should also be doubled.

Wadhwa Group
,Director, The Wadhwa Group

This year, we are optimistic about amendments and addressal of certain issues such as implementation of GST Bill, clarity on the land acquisition policy and RERA, and activation of REITs.

DHFL
,CEO, DHFL

Principal repayment limit must be allowed over and above other investment deductions in affordable housing segment. Moreover, additional funds should be allocated under the Rural Housing Scheme.

Kishore Bhatija, K Raheja Corp
,MD, Real Estate Development, K Raheja Corp

The government must address issues such as Income Tax slabs, IT SEZ Policy and GST Bill. Implementation of RERA, land acquisition policy and Benami Transactions Bill should also be expedited.

Sheth Corp
,Director, Sheth Corp

The Government must exempt Income tax for affordable homes and reduce service tax to off load home buyers of multiple taxes. There is also a dire need to put single window clearance in place.

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