The finance minister of India is set to unveil the union budget of 2018 on 1, Feb 2018. According to The top body of Real Estate Developers Confederation of Real Estate Developers Association of India Mr. Amit Modi, “The last quarter of 2017 has been encouraging for real estate and in 2018 demand is expected to grow in this sector”(source from NDTV India budget 2018).
Different views on Union Budget 2018
He said “Real estate developers have long been demanding single window clearance for residential and commercial projects,” he said. In the absence of single-video clearance currently, developers have to take several types of approvals and approvals. They have to make rounds in many navigational departments. This takes 18 to 36 months to start the project.”(source from NDTV India Budget 2018).
On the question of expectations from Budget Mr. Amit, director of ABA Corp, a real estate company, Delhi and National Capital Region, says, “We want everyone to have their own home and home loan for this dream is very helpful. Keeping in mind the consumers who bought the house for the first time, the limit of tax deduction should be increased on home loan up to Rs 5 lakh. At present, the limit is two lakh rupees annually. A similar rebate should be given on the repayment of a loan of Rs. 1(source from NDTV BUDGET 2018).
He further said, “Apart from this, real estate should get industry status. People associated with this area have long been seeking industry status for real estate. This will facilitate financial help from banks and other financial institutions. Getting the status of the industry will get a loan at a lower cost, which will be the beneficiary to the consumer”(source from the NDTV INDIA BUDGET 2018).
Taxpayers hope that in this budget, the Modi government can increase the exemption limit from Rs 2.5 lakh to Rs 3 lakh. This will give more money for the purchase of common people. Medical reimbursement of Rs 15,000 was started in 1999. Tax experts say that considering the costly treatment this relaxation should be done by the government at least Rs. 50,000(source from Economic Times).
Houses for tax rebates on the upper house for the house, Mumbai, Delhi, Kolkata, and Chennai. Apart from these 4 cities, in cities like Bengaluru, Pune, Hyderabad, and Chandigarh, rent is also quite high. In such cases, taxpayers hope that other cities should also be included in this category(source from Economic Times).
The employer has to pay the amount to the company at the time the job is completed without changing the notice period. Taxpayers believe that this is like double shock on the employee because, on one hand, they have to pay tax on the salaries, which they did not get. Second, the company has to pay more money. Taxpayers hope that tax should be done only on the salary, which in fact has received them from the company(source from Economic Times).
Tax experts believe that the government should increase the discount on the education of children and allocations to meet the hostels. According to the existing rules, tax on two children’s education is not taxed at Rs 100 per month and on the allotment of 300 rupees for the hostel(source from Economic Times).