This should amplify the interest of developers further, to build more affordable projects, thereby, increasing supply. 100% deduction for profits, for affordable housing projects which earlier needed to be completedin three years, now have to be completed in five years; will bring relief to developers plagued by approval issues. A one year tax break for unsold inventory that has received the CC, will bring some relief to developers.
The move to abolish FIPB, indicates further liberalisation of the FDI policy, something that the finance crunched sector would welcome. Long-term capitals gains tax benefit which could be availed after three years, can now be availed after two years, which would please investors and home buyers alike. The new Metro Rail Act which is to focus on innovation, and the government’s decision to focus on MMTS, would augur well in creating connectivity for peripheral locations – something that’s a must if developers and buyers are to be incentivised for investing in emerging locations.
The author is Sunil Mishra, Chief Strategy Officer, PropTiger.com.
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