Budget 2019: Seek incentives for real estate industry

By Ashish R. Puravankara and Suresh Kumar A

On the back of a series of attractive incentives proposed in the last interim Union Budget, the sector believes all the initiatives announced by the government will continue, along with more new incentives to further strengthen the reality ecosystem in the country. We hope in this budget, the policies are inclusive of provisions that provide a conducive environment for the real estate.

Some of the key expectations of the industry from the budget are:
• A roadmap to execute the ‘infrastructure status’ afforded to the industry in the previous budgets without restricting it to affordable housing projects alone.
No cap for loss from house property: The limit set-off for loss from house property of 2 lakh should be removed at least for rented houses.
• Reinstating Input Tax Credit (ITC) and extending it to the commercial segment against GST payable on rent of same project or any other building rent.

Further extension should be given for availing benefits falling under Sec. 8O-IBA for Affordable Housing Scheme / Housing For All

• Differential GST rate for apartment value for more than Rs.7000 per sq. ft.
• Abolition of GST payable by the landowner in a Joint Development agreement
• Abolition of tax on the unsold inventory
• Framing a National Rental Housing Policy in order to meet the target of Housing for all by
• Redressing the liquidity crunch in the sector by pumping in more capital, which will also provide an impetus to the country’s economic growth

Real estate is the second largest employer in India after agriculture. The sector is hopeful that a viable roadmap for sustainable growth will create employment opportunities across the industry and eventually be a catalyst for a stronger India INC!

Ashish R. Puravankara is Managing Director, Puravankara Ltd. and Suresh Kumar A is Chief Financial Officer, Adarsh Group