New Government New Hope, this is how developers are eying on Union Budget for current fiscal: Vikas Gupta

Says, this time again the sector is expecting consideration of long pending demand to give new lease of life
Ludhiana, July 7, 2014: New Government New Hope, this is how developers are eying on Union Budget for current fiscal (2014-15) from newly formed Government of India, which is to be presented in the parliament on July 10, 2014. This time again the sector is expecting consideration of long pending demand to give new lease of life. They are expecting a lot from this full majority government for real estate sector, which is sluggish for the last few years which is due to the fact that sales are coming down and financial crunch is delaying the deliveries. It is believed that it is high time when certain initiatives can be taken by the government to give a boost to real estate sector.
Stating this in a statement issued here today, Vikas Gupta, JMD, Earth Group, adds, the government must reduce interest rate on home loans, even developers be given loans at lesser rate of interest. Presently, interest rates charged by the banks to developers and home buyers are at an all-time peak. As a result, real estate sector is hitting hard these days. The government should also raise the tax exemption limit for interest payment on housing loan.
“It is also a long-pending demand that real estate sector be given status of an industry. In case it is done realtors will be in a position to arrange funds at lower interest rate. Besides, real estate sector will get many other facilities after getting status of industry. It is hoped that the government will consider this demand in forthcoming Union Budget. The demand for giving industry status to real estate sector is significant because this sector is the second largest employment provider in the country”, he says.
Gupta says that realtors also seek that the government must introduce single window clearance system, so that they may get time-bound and hassle-free clearances for housing projects. Presently, projects are getting delayed because of multiple approvals from various government departments. The ongoing practice of getting approvals not only let projects delayed but also let increase in cost of projects.
Adding, he says that it is also expected that the government will come out with a proper REIT (Real Estate Investment Trust) structure.  Also, in order to give a boost to real estate sector, the government must scrap the service tax on under construction properties from buyers prospective.  The government must also come out with new policies pertaining to FDI in real estate sector. The bitter truth is that real estate sector is in dire need of liberalized funding flow.
Further, he says that the government must also announce the implementation of Goods & Services Tax (GST) in order to rationalise indirect taxes. It is believed that GST will simplify the present complex tax system.