CREDAI Bengal welcomes Union Budget

“In line with the government’s ongoing push with regard to affordable housing and 'Housing for All by 2022", Budget 2016 promotes and boosts affordable housing sector. The budget seems wholesome favouring both consumers and the developers," Mohta said in a statement.

"Raising the exemption limit of Income Tax for the buyers from Rs. 1.5 lacs to Rs 2 lacs, for buyers who have invested in a unit costing upto Rs. 50 lacs, and availed a housing loan of upto Rs 30 lacs, is likely to boost demand for affordable houses. Issues related to the excise department and rationalizations of taxes have been addressed too," he said.

"Exemption of Income tax payment by the developers for housing units measuring up to 30 sq m in Metropolitan areas and up to 60 sq m in Non Metropolitan shall result in creation of more housing stock in the affordable segment. Increasing the limit of deduction from existing Rs. 24000/- to Rs. 60,000 per annum for small taxpaying employees who are on rent and does not own a house is also a welcome step," said he.

Mohta said the budget provides a good deal of weightage to rural and farm sector and infrastructure development including roads and railways in particular.

"This is likely to benefit all sectors of the economy including the Real Estate, upholding the country’s socio-economic index. Infrastructure is considered to be the key to boosting economic growth. The improved farm sector will result in enhancement disposable income in the rural sector which may result in increased demand for rural houses. The SPV’s transferring dividend income to REIT will be exempt from payment of dividend distribution tax is also what we appreciate,” said he.

Jaitley on Monday presented the Union Budget 2016 focusing on rural development and farm and social sector along with infrastructure with analysts terming it a pro-poor, pro-agriculture move that throws a challenge to the government to implement in reality.

Major focus of the budget is on agriculture and farmers’ welfare, with a massive mission to provide LPG connection to poor households, a new health protection scheme, increased outlay for infrastructure,  Rs. 2.87 Lakh crore Grant in Aid to Gram Panchayats and Municipalities and setting up of 1500 Multi Skill Training Institutes and incentives for jobs creation.