Budget impact: PwC looks at pluses & minuses for realty
The much awaited Union Budget 2011-2012 was announced by the Finance Minister (FM) in the Parliament. Though not every aspect from the wish bag has been considered by the FM in the Budget, he has certainly made an effort to fulfill few of the wishes.
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Budget impact: PwC looks at pluses & minuses for realty
The much awaited Union Budget 2011-2012 was announced by the Finance Minister (FM) in the Parliament. Though not every aspect from the wish bag has been considered by the FM in the Budget, he has certainly made an effort to fulfill few of the wishes.
Like this story, share it with millions of investors on M3
Budget impact: PwC looks at pluses & minuses for realty
The much awaited Union Budget 2011-2012 was announced by the Finance Minister (FM) in the Parliament. Though not every aspect from the wish bag has been considered by the FM in the Budget, he has certainly made an effort to fulfill few of the wishes.
The much awaited Union Budget 2011-2012 was announced by the Finance Minister (FM) in the Parliament. Though not every aspect from the wish bag has been considered by the FM in the Budget, he has certainly made an effort to fulfill few of the wishes. That said, it would be really interesting to look at both sides of the coin.
On the positives:
An investment linked deduction under section 35 AD has been proposed for developing and building a housing project under the affordable housing scheme framed by the Government;
Existing scheme of interest subvention of 1% on housing loans has been further liberalized by extending the same to housing loan upto Rs 15 lakh (presently Rs 10 lakh) where the cost of the house does not exceed Rs 25 lakh (presently Rs 20 lakh). This step would certainly encourage the growth in housing sector;
Considering the increase in prices of residential properties, the limit for dwelling units under priority sector lending has been enhanced to Rs 25 lakh;
To provide housing finance to targeted groups in rural areas at competitive rates, the provision under rural housing fund enhanced to Rs 3,000 crore;
Further, it is proposed to create a Mortgage Risk Guarantee Fund to enhance the credit worthiness of EWS and LIG households;
Setting up of Central Electronic Registry to prevent frauds in loan cases involving multiple lending on the same immovable property
However, on the flip side; few expectations like providing ‘infrastructure’ status to the real estate sector, opening ECB to fund real estate projects, enhancing the limit of deduction for interest on housing loan along with a parallel increase in the limit for deduction towards principal repayment, service tax exemption on purchase of property, continue in the wish-list.
