Affordable housing is key to India's growth, says MD, Chintels India Pvt Ltd

After the announcement of the General Budget 2017-18, Prashant Solomon, Managing Director, Chintels India Pvt Ltd and Treasurer, CREDAI NCR said that the initiatives suggested will surely be integral to the growth of real estate in the country, as well as end its isolation.

"Apart from affordable housing being granted infrastructure status, the sizes of what is considered as affordable housing has been taken as 30 sq. mt and 60 sq. mt carpet area as against the super area which was there before, " said Solomon.

"For builders for whom constructed buildings are stock-in-trade, tax on notional rental income will only apply after one year of the end of the year in which completion certificate is received. Reduction in the holding period for computing long term capital gains from transfer of immovable property from 3 years to 2 years," added Solomon.

"Also, the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property. For Joint Development Agreement signed for development of property, the liability to pay capital gain tax will arise in the year the project is completed," said Solomon.

"Initiatives like 'Housing for all by 2022', DDT exemption in REIT, increased allocation towards the infrastructure sector including roads and highways and the NHB allocation to affordable Housing Finance Companies will encourage affordable housing," added Abhishek Bansal, Executive Director, Pacific India.

" Reduction in time to 2 years for long term capital gains tax benefits will aid the real estate investors as they can book profits by paying a bare minimum income tax at the end of two years only on profits earned from sale of property. This along with other initiatives like impetus towards skill development, Tax regime, jobs creation and will act as a big push towards the government's make in India and smart city initiatives," said Bansal.

With regards to taxation policies, Tomas Pavel, CMO, Home Credit India Pvt. Ltd appreciated Finance Minister Arun Jaitley's initiatives to uplift the weaker sections of the society.

"The Finance Minister presented a carefully detailed plan to improve people's spending power and also focused on the need of small traders and farmers. It is heartening to note that the Finance Minister has offered the biggest tax break to the lowest salaried bracket giving them more money in hand," Pavel added.