Being the last budget before the general elections, the industry was actually expecting a populist budget from the interim finance minister. However, Mr. Piyush Goyal indeed faired well and presented a well-balanced Budget, giving full impetus to every sector. The government’s decision to extend the Income Tax exemption from Rs 2.5 Lakh to Rs 5 Lakh is definitely a big reason to cheer. The government also addressed farmers issues, rural infrastructure and other macro as well as microeconomic aspects.
Talking particularly about the real estate industry, this budget brought in much cheer. There were many things for the developers as well as the end consumers to make them happy. The government’s decision to remove notional rent from the second self-occupied home will have a direct impact on the market of the secondary homes. It will also give a boost to the affordable housing segment. Also, its decision to extend the Capital Gains limit to Rs 2 crore to be invested in 2 properties is another good move. And at the top of everything, extending the benefits of Section 80 (i) AB to one more year directly benefits the developers as they now have one additional year to dispose of their unsold inventories.
Here is an analysis of the interim budget and how it is going to impact the real estate market overall.