http://www.uniindia.com/~/union-budget-lays-groundwork-for-sustained-economic-growth-mohta/Business Economy/news/3381129.html
Kolkata, Feb 01 (UNI) Sushil Mohta, chairman, Merlin Group President- Credai West Bengal, on Saturday said the Union Budget presented by Finance Minister Nirmala Sitharaman lays the groundwork for sustained economic growth, with several provisions impacting the real estate sector.
He said, “The increase in the income tax exemption limit to ₹12 lakh and the higher TDS threshold on rent (from ₹2.4 lakh to ₹6 lakh) are expected to enhance disposable income, drive housing demand, and boost overall consumption.”
“The allocation of ₹1 lakh crore under the Urban Challenge Fund will promote better urban planning, paving the way for infrastructure-driven real estate growth. Additionally, the ₹15,000 crore SWAMIH Fund 2 is a much-needed initiative to accelerate stalled housing projects, ensuring liquidity in the sector. The expansion of the UDAN scheme will further improve regional connectivity, opening up new real estate markets in Tier 2 and Tier 3 cities.”
“However, the sector had anticipated additional measures, particularly in affordable housing. Key industry demands, such as higher home loan interest exemptions, a revision in the affordable housing definition based on dwelling unit size instead of a uniform ₹45 lakh value, and industry status for real estate, remain unaddressed. These reforms could have significantly boosted housing affordability and investment inflows.”
“While the announcements are positive, the sector remains hopeful for a Repo rate cut later this month, which could further improve homebuyer sentiment and drive growth.”
Saket Mohta, MD Merlin Group, said, "The Union Budget is a growth-oriented and development-focused one. We are optimistic that the emphasis on infrastructure will positively impact the real estate sector. I appreciate the revised tax slabs, which provide relief across the board. This move will enhance disposable income for the working class, boost household consumption, and create room for growth in the housing sector.
The introduction of a credit card facility for micro-enterprises and support for startups are welcome steps. However, we had hoped for industry status for the real estate sector, which would have facilitated greater investment. Exemption of income tax payable for income up to ₹12 lakh, coupled with increasing the TDS threshold on rent from ₹2.4 lakh to ₹6 lakh, will significantly enhance disposable income, boosting housing demand and overall consumption will all boost real estate sector."
UNI SJC KK
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