Thursday 28 February 2013

Budget 2013 – No proposal to benefit Real Estate

Yesterday was a big day as Finance Minister P.Chidambaram presented the much awaited Union Budget 2013-14 in the Parliament. As everyone was speculating, for some the budget brought cheer but for others there was nothing much in it.

If we talk specifically of real estate then too there was disappointment from the budget (except the tax exemption on home loans).

Finance Minister did not propose any beneficial proposal for the real estate sector. Moreover the buyers were disappointed with FM for implementing tax deduction at source on transfer of property (land/ building) for transaction in excess of Rs 50 lakh. As this will result in increasing the burden and will up the price of high end housing.

Adding more to the dilemma the sector was hoping for the 'infrastructure status' which was not given to it, ultimately letting down the expectations of Indian real estate sector.

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