Budget 2016: Jaitley could have done more for real estate sector
“Finance Minister could have done few more things for the real estate sector that needed attention. Industry status at par with infrastructure for priority lending below 10% would have been icing on the cake. Single window clearance scheme were other topics that remained untouched”, said Mayur Shah of Marathon Futurex.
Finance Minister Arun Jaitley presented the Union Budget 2016 on Monday which received mixed reactions from various industries.
Jaitley said for first time home buyers, an additional deduction of Rs 50,000 on interest will be levied for loans up to Rs 35 lakh for property not exceeding Rs 50 lakh.
While speaking to dna, Mayur Shah, Managing Director of Marathon Group, said, “The real estate industry welcomes some of the announcements like exemption of dividend distribution tax from Real Estate Investment Trust (REITs). Provisions like, 100% deduction to undertaking for the construction of affordable housing and additional tax deduction on the interest paid for loan amount on houses less than Rs 50 lakh is worth appreciating”.
Further, he said, “These measures will boost affordable housing in the Mumbai Metropolitan Region and will, at the same time, achieve the Prime Minister’s dream of Housing for All’. Ab increase in the tax deduction from Rs 24,000 to Rs 60,000 for those living in rented houses will also benefit the housing sector indirectly”.