Union Budget 2017 proposes several positive measures for the real estate sector. Key highlights for real estate sector in Union Budget 2017:
- Affordable Housing has been given the Infrastructure status.
- 1 crore rural houses will be created by 2019.
- National Housing Bank to refinance Rs 20,000 crore loans.
- Pradhan Mantri Awas Yojana to get Rs 23,000 crore.
- Real estate developers to get tax relief on unsold stock as liability to pay capital gains will arise only in the year a project is completed.
- Instead of Built up area of 30 and 60 sq meters, the carpet area of 30 and 60 sq meters will be applicable for affordable housing.
- Holding period for capital gains tax for immovable property reduced from 3 years to 2 years.
- Window for availing 3 year profit-linked incentives for start ups increased to 7 years against 5 years earlier.
- Tax break of 1 year post receipt of the completion certificate, for the unsold stock.
- New FDI policy under consideration.
- No cash transaction above Rs 3 lakh will be allowed.
- Rs 2.41 lakh crore has been allocated to boosting infrastructure for transportation.
- Indra Awaas Yojana will be extended to 600 districts.
- Total allocation for the infrastructure sector is Rs 3,96,135 crore.
- Allocation for National Highways to be at Rs 64,000 crore.
- Indexation for capital gains shifted from 01-04-81 to 01-04-2001.
