Standing in the age of globalisation, liberalisation and privatisation Indian economy for the last decades has experienced excellent growth. Real Estate is an important part of the economy and is accountable for its development investment, advancement of the nation’s infrastructure stand & major originators of trade and industry activity.
The real estate sector has strong connections with various industries such as tiles, paints, fittings & fixtures, cement & steel etc. Real Estate of India has seen many up and down from 2004- 05. Following to the government’s strategy to permit Foreign Direct Investment (FDI) in real estate, there was a positive sign in investment and construction activities.
Real Estate Field not only observed the entry of many local and big names but also the invasion of many Real Estate Investment companies from foreign in addition to private equity funds, pension funds and development companies come into the segment attracted by the excellent appreciation on investments. In the year 2008 there raised an economic crisis and Indian Real Estate took a back gear. Regular inflow of FDI was dropped into real estate extensively and what had appeared as one of the most capable markets for foreign investments faced a recession.
After the darkness and recession of global downturn, Indian Real Estate came back into the action in 2010 with the concentration on Affordable Housing, helped the sector to come over the critical situation it had experienced. In the Union Budget of 2014-15, where affordable residential project was well thought-out on par with infrastructure, to relaxation of inflexibilities in the Land Acquisition and Real Estate Regulatory Bill, our new Prime Minister has been gifting the real estate constant pills of force. In the Union Budget 2017 proposes several positive measures for the real estate sector. Here are the key positives measures
- Infrastructure status to affordable housing, which will reduce the cost of funding for the builders, the benefit of which he can pass on to the purchasers.
- Capital gain tax period reduced to 2 years from 3 years, which means less capital gain tax for a person who intends to sell the house after two years of purchase instead of 3 years.
- Notional tax on the unsold but ready inventory to be charged only after 1 year.
- The land holder in any real estate project has to pay tax on the gains only once the project is complete