Real Estate 2020-21 Budget is expected to bring back the input tax credit by Mr. Eshwar N, CASAGRAND

Pre budget 2020-21

2020-21 budget is expected to bring back the input tax credit for under construction properties by moderately altering the rate upwards of 5%.

by Mr. Eshwar N, Executive Vice President - Marketing, CASAGRAND.

The Indian real estate sector has been under stress during the past year. The FM announced relief fund has provided some stimulus to the sector but the need of the hour is to target key factors that can make a huge impact to the current market situation.

These are namely interest on loans, inputs tax credit and extention of the stress funds to disciplined developers.Many developers are hopeful that the upcoming budget would address these key areas and improve buyer sentiment.

The 2020-21 budget is expected to bring back the input tax credit for under construction properties by moderately altering the rate upwards of 5%.

 

Mr. Eshwar N,
Executive Vice President - Marketing,
CASAGRAND

This will bring more liquidity and encourage more investment in the housing sector.

The government should also consider a higher exemption limit for all home buyers during the FY 20-21. Lowering of the repo rate would provide a much needed stimulus to the sector and also boost buyer confidence.

The ongoing liquidity crunch has had a cascading impact across developers, the extension of the relief fund will help increase capital flow for  all developers and ensure timely delivery of projects. 

This will help maintain the supply of high demand segments, namely affordable homes and high demand ready-to-move-in homes.

The Realty sector is the the second-largest employer in the country contributing about 8% to 10% of the GDP. Reviving the sector will have a positive ripple effect across the economy. The government should also consider implementation of land reforms that can help boost other sectors.

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