Post Budget Review by Sam
Post the DeMO drive, our government has been
focusing on making our economy policy and system based and hence following the
targeted delivery approach to become more planned and professional. Very
rightly said by the FM, Arun Jaitely, the positive signs and optimistic outlook
of the economy are showing green shoots and the effects of DeMo are not
expected to spill over in the next year. The affordable housing has been given
the infrastructure status which is likely to result in improved participation
from private players. Affordable housing is a priority for this Government and
it was expected to get an Infra Status. With this the developers can access
foreign funds at a cheaper cost. Also with the restriction of Cash Transactions
to Rs. 3 Lacs, the cash component will be eradicated completely from this
sector and hence making it more transparent. The sales are expected to increase
in the residential market with Real estate developers getting tax relief on
unsold stock. Under Real Estate Industry, Affordable housing was given major
emphasis. One such related announcement was where Instead of build up area, carpet
area will be counted for affordable housing. Reduction in the holding period
for computing long term capital gains from transfer of immovable property from
3 years to 2 years is another major change in the budget. Overall, the housing sector will gain
immensely from the Budget 2017
