Recent times have not been good for real estate sector in the country. Construction projects have stalled in many Indian cities, many times even after accepting payments from homebuyers. The demand is low and customers don't seem too keen to part with their money. The government has publically committed that it will provide housing to all by the year 2022. For this, the government needs to rejuvenate the sector. The government needs to make drastic reforms. This makes it all the more important that Finance Minister Nirmala Sitharaman gives real estate sector a relief in Union Budget 2020.
Here's what real estate sector expects from Union Budget 2020:
- The sector will benefit hugely if a single GST rate is applied. Currently, real estate sector faces multiple tax rates and taxes.
- Stamp duty tends to be a problematic area for developers and homebuyers alike. There are many voices from inside the sector have called for the abolition of stamp duty or at least its inclusion in GST.
- There are procedural issues as well. Currently, developers have to go to multiple government agencies for project approvals. A single window clearance will be useful.
- This sector does not enjoy the status of an industry. If such a status is given, it will prove to be beneficial for the revival of the sector
- Reduction in personal income tax would mean that homebuyers will have a greater capacity to purchase real estate. This may increase liquidity in the sector.
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