Mar 1 2016 | Web Exclusive

Budget reaction | Akshaya Akshaya Pvt. Ltd

"This year the budget gives a lot of hope to the real estate industry. The sector gets a  boost with  an allocation  of 2.21 lk cr for the infrastructure  for FY17 which will help unlock lot of land parcels. Although we are disappointed that infrastructure status has not been accorded to real estate, the above is a first step towards fulfilling the requirement. The allocation of more funds and tax exemptions for construction of upto 30sq m in metros and 60sq m in non-metros is a welcome move for affordable housing and should go in a long way in providing housing for all.  Additional tax sops for  rental houses from Rs 24,000 to Rs 60,000 pa and additional  deduction of 50,000 on interest for loan upto 35 lakhs for first time home buyers is an encouraging step..But importantly faster clearance of projects through a single window clearance system has not been addressed in the budget.The Budget  does not have any impact on the cost of raw material, which is an important factor in the cost of housing. Individual tax exemption limit has not been raised which impacts home buying."