Union Budget 2017: Through the Eyepiece of Real Estate
The economy of a country lies on the shoulders of its people. A minute change in the tax tariff has the ability to spawn a huge economic turnabout or a depression comparable to that in 1929. Finance Minister Arun Jaitley must be having sleepless nights since Union Budget 2017 is to be rolled out in a few days’ time. Among the most affected sectors is the realty industry which experienced a huge plunge in cost following demonetization. In Budget-2017, the real estate is projected to undergo lot of changes, which starts with the Goods and Service Tax (GST) and the Real Estate Regulation Act (RERA). Both of these will herald a new age of competition in the realty sector where only the big shots shall remain standing.
Here’s what will help the realty sector:
• A consumer-friendly budget that pushes everyone to invest in real estate is needed. This can be done through low home loan rates.
• Revising income tax slabs will help buyers to save money on their property purchases.
• The government should spare more resources for the real estate industry and project approvals should be sped up. Developers often complain about the damages incurred due to late approvals and bureaucracy. This issue needs to be resolved first.
• GST should be implemented as soon as possible. Real estate is weighed down with numerous taxes such as service tax, value-added tax, and stamp duty. Introducing a consolidated tax model can lower input cost and agreement cost. Once RERA and GST are in place, the equity flow will increase in the whole system.
• Before structuring a new policy for realty, the government should consult an expert.
The Union Budget 2017 might redefine the Indian economy. The Centre led by Prime Minister Narendra Modi is known to make some really surprising changes. Let’s hope Budget 2017 influences the financial system positively.
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