Quick glance at 2020 Union Budget

With the start of Union Budget 2020 countdown, the real estate industry is keenly looking forward to positive uptick from Union Finance Minister Nirmala Sitaraman on February 1st, 2020.

Here are few key expectations and reforms from the upcoming budget:

•    From infrastructure front, the government should throw some light on five-year long-term plan of Rs. 102 lakh cr, which will be beneficial for the sector’s players
•    Single-window clearance for real estate projects is long-awaited expectation from real estate developers, enabling on-time deliveries of the sector
•    Revision in 5 per cent income tax slab to Rs. 2.5 lakh to Rs.7 lakh will boost consumers’ spending confidence and spur demand and liquidity in the market, improving economic health of the country
•    Easing of loan lending norms will reduce liquidity crunch and pressure on realty developers
•    Restoring of ITC (input tax credit) with allowance of 12 per cent GST and land cost of 33 per cent will definitely profit cash-starved real estate industry
•    Homebuyers should be offered tax exemption on loans from current 2 lakh to 5 lakh, accelerating the residential projects’ demand in the country
•    When it comes to commercial and residential property, 30 per cent standard deduction is permitted on rental income and it should be increased to 50 per cent

One can expect Union Budget 2020 to bring in waves of acceleration in financial and economic system of the country along with productive support to the real estate industry.    

-Mr. Harinder Singh, Chairman, Realistic Realtors