The Union Budget 13-14 Ignored The Real Estate Sector

By Author: indiahomes marketing
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Another year, another day…the union budget as hyped proved to be not so great in the view of the real estate sentiments. As expected, FM, Chidambaram, played safe and touched the outlines rather than outing efforts on opening new doors of growth for the real estate sector. As expected, there aren’t any plans rolled out for supporting the increasing pace that would benefit the sector in a true sense. (Fortunately there are sites like www.IndiaHomes.com that don’t charge brokerage!)

No Industry Identity:

One of the major setbacks for the real estate sector is its pending ‘industry’ status that remains a mystery this year too. As it was hyped, real estate hasn’t been recognized as an industry and therefore, it could not get benefits as other progressive industries in the country today.

Tax Deduction at Source on Property Transfer:

Levied an additional liability of paying 1% of TDS on transfer of property (building/land) would be a painful experienced for both buyers as well as realtors. So, if you are planning for a dealing any such property worth less than 50 lakhs, you may ...
... have to be ready for an additional financial burden. This move will definitely increase the cost of the area and excise duty and service tax may likely to shoot up.

Lower Cost of Borrowing:

Lowering down the cost of borrowing is a welcoming move that would benefit the sector largely. According to the new announcement, people borrowing a home loan less than Rs.25 lakhs would get an additional benefit of Rs 1 lakh, in addition to the prevailing current deduction of Rs. 1.5 lakh.

Funding to Rural Housing Fund

In addition, the finance minister has tried to woe the real estate developers by allocating additional funding to rural fund and launch of urban housing fund. This move will resolve liquidity crunch facing current by realtors. Also, the government has announced major road developments in states including Gujarat, MP, Rajasthan and Maharashtra enabling township concepts in these states in a long run.

The Union Budget 2013-14 brings a mixed feeling to all homebuyers and realtors across the country. The budget outlined major factors that would pave the way for a positive growth for the real estate sector. Additional deductions and setting up for rural funding are surely positive indicators that will infuse a new energy into the real estate sector however, additional tax liability may pose difficulties for bother buyers and realtors in the near future as prices may likely to escalate further.

Author Bio

Nitin Sabharwal is an enthusiastic marketing explorer who redefines prospective subjects for his works in digital advertising & marketing, e-commerce, and content development. With a commanding work experience of 16 years, Nitin’s participation in digital enabled services with a special emphasis on the Internet has earned him several respectable positions in India’s premier companies. Positioned as VP-Marketing of IndiaHomes, Nitin is maneuvering the company’s branding, Performance, CRM, Contact Centre, Event Marketing and Digital Marketing. Academically, he holds an MBA degree from IMT Ghaziabad. homebuyers and realtors