The Union budget of 2013 presented by Chidambaram has had the opposite effect on real estate industry.Already facing a severe slowdown,the finance minister has made life even more difficult for the real estate industry.
The following are the main points of the budget with respect to the real estate trade.
- 1% TDS (tax deducted at source) on all real estate transactions over Rs.50 lakhs
- Service tax raised to 3.7% against the earlier 3.09% if the house is worth more than 1 crore or the area is over 2000 sq ft.
- Excise duty on marble increased from Rs 30 per sq ft to Rs 60 per sq ft.
- No ‘infrastructure’ status to real estate sector.This would have enabled real estate companies/builders to get sops like cheap loans etc from the govt and banks.
- The only ‘benefit’ that the budget has for a buyer is an additional 1 lakh rupee deduction for interest payment on a first time housing loan.But the catch is that the loan amount has to be less than 25 lakhs.
So basically,it means nothing.
So all said and done,the going is only going to get tougher for the housing industry post the 2013 budget.
- Chidambaram’s budget is missed opportunity: Realtors (vancouverdesi.com)
- Budget 2013: What the real estate sector expects (rediff.com)
- Clear pending Real Estate Regulatory Bill (rediff.com)
- Tax sops won’t help home buyers in prime areas of Bangalore (thehindu.com)