INSUBCONTINENT EXCLUSIVE:
From a real estate standpoint, the last year was largely spent getting acclimatized to the new policies which ushered better transparency
and accountability in the sector
While the government has taken several concrete measures, there is still a long way to go
We hope that the government looks into some of the key concerns raised by the industry and addresses the same soon.The Indian real estate
sector is the most highly taxed with the combination of high direct and indirect taxes, stamp duties and levies for development approvals
These extraordinarily high taxes coupled with high interest rates have been crippling growth
To bring back growth in the sector which is so vital to any developing economy, we expect government to impart industry status to the sector
which would enable developers to cut capital costs and pass on the benefits to consumers
The government should speed up its measures for infrastructure development which will ensure cheaper land for housing and push
affordability.Overall, the result of the elections augurs well for the growth of the Indian real estate sector
However, to achieve the objectives of housing for all mission, the government also needs to incentivise the key stakeholders through direct
and indirect tax measures.There is significant expectation to cut GST rates to a single, standard rate, and not have multiple rates or taxes
The abolition of stamp duty or its incorporation under GST will be an added advantage
Relaxation in income tax slabs will also be welcomed as it will allow salaried class to make further investments in real estate.The
government must look at increasing the deduction limit under Section 80C from the current Rs 1.5 lakh
The need of the hour is to lower interest rates which will help resolve the existing liquidity crisis and boost housing demand.Apart from
these, elimination of taxes on vacant property, dropping circle rates section from Income Tax Act, ensuring tax rationalization on REITs and
lowering costs of land acquisition are some of the measures that will positively impact the sector.We expect continued momentum for Indian
realty to attract new investments into the sector and hope that the government brings positive measures for the holistic growth of the
Indian real estate sector, imperative to fuel India's growth engine.(Surendra Hiranandani is founder and director of House of
Hiranandani)Disclaimer: The opinions expressed within this article are the personal opinions of the author
The facts and opinions appearing in the article do not reflect the views of TheIndianSubcontinent and TheIndianSubcontinent does not assume
any responsibility or liability for the same.
