Real Estate Wishlist for Forthcoming Budget 2020-21

·         A fiscal stimulus to the real estate sector will have manifold affect on 269 allied industries.

·         Liquidity issue, Industry status, Extension of the Sunset Clause of SEZ and restructuring of realty sector loans amongst other policy changes, the real estate leaders list down their expectations that can help boost the real estate sector.

·         The industry has been demanding a restructuring of loans or a one-time roll-over in case of the stressed assets at the options of banks.

·         The sector needs a one-time subvention scheme and restructuring of realty sector loans

·         The sector has long been demanding a single window clearance mechanism

·         The government had introduced a sunset clause for SEZs in 2016. According to the clause, only an SEZ unit that commences operations on or before March 31, 2020, shall be eligible for an income tax holiday. Considering the challenges faced by the real estate sector in the last couple of years, there is a need for the government to extend the date and provide the required relief to SEZ units and developers

·         The government needs to push the well-capitalized NBFC’s to extend liquidity to the sector and look at a resolution mechanism for the stressed NBFC’s and banks to enable seamless credit flow for developers and homebuyers.

·         The additional tax benefit for home loan interest announced in the previous budget now takes the tally to 3.5 lacs (Section 24 (b) & 80 EEA) for homes worth 45 lacs circle value. The same needs to be extended for homes costing upto Rs.1 crore to benefit the middle-class families residing in Metro cities

·         The additional income tax benefit for home loan interest which was announced for home loans sanctioned between Apr 19 – Mar 20 needs to be extended for a minimum of 3 more years.

·         he period of exemption from levy of tax on notional rent, on unsold inventories, needs to be extended to 3 years from 2 after receiving the Occupation Certificate. This is keeping in mind the slow reduction in unsold inventory levels and lackluster demand for real estate assets.

Latin Manharlal Group