Budget 2016 favorable for Real estate sector’- Kumar Builders
The third Union Budget announced by the Finance Minister Arun Jaitley has met the major expectations of Real estate, the industry reeling under a slump for a long time. Kumar Builders, one of the leading realty entities highlights that the Union budget is well balanced and pragmatic. It has addressed the three major concerns of the real estate industry- the removal of DDT from REITs, increased HRA deduction, and boost to affordable housing by allowing 100% deduction on profits made by entities constructing them. The company states that the Union budget has provided relief to lakhs of people who live in rented houses in the country as Arun Jaitley announced that the deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit the people living in rented houses.
Kumar Builders Group states that the scrapping of dividend distribution tax on Real Estate Investment Trusts (REITs) will be a great help to the realtors in raising money from the investors. The additional exemption of housing loan interest of 50,000 provided value of house does not exceed Rs 50 lakh and 100% deduction to undertakings in the affordable housing sector will boost the realty sector. The hike in HRA from 24,000 to 60,000 will serve as an added advantage for the middle income class. The announcement of no service tax for houses built less than 60 sq. meters in non-metro and 30 sq. mt. in the four metro cities is likely to cheer the middle class segment.
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