2
2
Budget 2019 India
Market trends Property

Interim Budget Offers Relief to Middle Class, Real Estate Sector

By on February 1, 2019

Interim Budget Offers Relief to Middle Class, Real Estate Sector

The Interim Budget announced for FY 2019-20 has brought a lot of joy and hope to numerous sections of the country, especially the middle class. From a real estate perspective some of the budget announcements are beneficial and will boost recent growth. Here we list down some of them:

  • Household disposable income has received a boost, thanks to the full tax rebate on individual annual income up to Rs. 5 lakh. Salaried standard deduction has been raised further to Rs. 50,000 from the earlier Rs 40,000. This increased savings is expected to increase confidence to invest in properties.
  • Tax on notional rent from second self-occupied property has been waived off. This is a big boost to those who own second homes as well as those who have been seeking to do so. As a result, this will serve to boost demand for second homes as families grow bigger.
  • The TDS threshold on rental income has been raised from Rs. 1.8 lakh to 2.4 lakh. This comes as a big incentive to many who are looking to invest in homes for investment purposes and earn rental income.
  • 1.53 crore houses were constructed under Pradhan Mantri Awas Yojana (PMAY) in last 5 years. The Interim Budget continues to push for more affordable homes with extension of benefits under Sec 80(i)BA for one more year, for all housing projects approved till end of 2019-2020. This should serve to expand this asset class even further and make it more attractive to more buyers as well as developers.
  • GST has been the biggest Indian tax reform since independence. The government continues to remain focused on simplifying GST. It aims to reduce the tax burden on homebuyers and the GST council will take necessary steps to do so.
  • Tax to be levied after 2 years from date of completion of a project allows developers more time to sell unsold inventory. This is a much required structural reform which will ease the operations of developers and reduce the incidence of tax.
  • Government is focused on boosting Ease of Living. It aims to build next-gen physical as well as social infrastructure for a $10 trillion economy. This will boost quality of living in Indian cities and towns.

Interim Budget

The Interim budget has continued the thrust on improving and enhancing infrastructure, the backbone of any developing country. This includes outlays for railways, roads, etc. to boost the connectivity across the country, especially to connect tier 2 and 3 towns to the big cities.

Overall, this is an expansionary budget which is aimed at increasing the disposable incomes of individuals and households. It also provides a blueprint for an expanding and prospering economy with provisions for sustainable and equitable growth.

Some of the announcements will potentially propel demand for homes and bring back domestic consumption and investment in the Indian real estate sector. This is a much needed prospect for this sector which is looking to build on the recovery and consolidation of 2018-2019.

What do you think of the Interim budget?

TAGS
RELATED POSTS
1 Comment
  1. Reply

    Blogosphere

    May 10, 2019

    I don’t even know how I ended up here, but I thought this
    post was good. I don’t know who you are but definitely you’re going to
    a famous blogger if you aren’t already.

LEAVE A COMMENT

Freedom Online Home Fest
Instagram
  • The clock is ticking. Say Goodbye to Rentals before it's too late.

Freedom Online Home Fest has been extended until the 25th of August! :D
Enjoy big savings on premium homes, only for the last few days! Make the most of the Biggest Online Home Fest today.

𝗛𝗼𝘄 𝘁𝗼 𝗮𝘃𝗮𝗶𝗹 𝘁𝗵𝗲 𝗼𝗳𝗳𝗲𝗿?
✔ Visit the website.
✔ Click on the project of your choice.
✔ Click on the home booking engine to take a virtual tour of the property.
✔ Click on your preferred home from the available selection
✔ Book your home by making an online payment of just Rs. 1,00,000.
✔ Fully-refundable booking amount.

Book Now: link in the bio 
#FreedomHomeFest #GoodByeRentals
#BiggestOnlineHomeFest #ProvidentHousing
*T&C Apply
  • Amazon Rainforest, referred to as "the lungs of the planet", produces 20% of the Oxygen in the Earth's atmosphere. Since August 15, more than 9,500 new forest fires have started across Brazil, primarily in the Amazon basin, that have wiped away a major portion of it. 
Save mother Earth and do your bit to #SaveTheAmazon! 
How can you help? - Donate to Rainforest Action Network to protect an acre of the Amazonian rainforest - Reduce your paper and wood consumption. Double-check with Rainforest alliance that what you're buying is rainforest-safe - Ecosia.org is a search engine that plants a tree for every 45 searches you run - Explore Change.org petitions. A lawyer in Rio Branco has accumulated over 77,000 of his 150,000 signature goal to mobilize an investigation into the Amazonian fires. 
#PrayForTheAmazon #TheAmazonFires #DoYourBit #ProvidentHousing
  • Your dream home awaits! Best chance to say goodbye to rentals. 
Freedom Online Home Fest has been extended until the 25th of August! :D

Enjoy big savings on premium homes, only for the last few days! Make the most of the Biggest Online Home Fest today.

𝗛𝗼𝘄 𝘁𝗼 𝗮𝘃𝗮𝗶𝗹 𝘁𝗵𝗲 𝗼𝗳𝗳𝗲𝗿?
✔ Visit the website.
✔ Click on the project of your choice.
✔ Click on the home booking engine to take a virtual tour of the property.
✔ Click on your preferred home from the available selection
✔ Book your home by making an online payment of just Rs. 1,00,000.
✔ Fully-refundable booking amount.

Book Now: link in the bio
#FreedomHomeFest #GoodByeRentals
#BiggestOnlineHomeFest #ProvidentHousing
*T&C Apply
  • Spread the word! You still have time to say Goodbye to Rentals!

Overwhelmed by the response, we have now extended the Freedom Online Home Fest till the 25th of August! 😊

Big savings on premium homes, only for the last few days! Make the most of the Biggest Online Home Fest today.

𝗛𝗼𝘄 𝘁𝗼 𝗮𝘃𝗮𝗶𝗹 𝘁𝗵𝗲 𝗼𝗳𝗳𝗲𝗿?
✔ Visit the website.
✔ Click on the project of your choice.
✔ Click on the home booking engine to take a virtual tour of the property.
✔ Click on your preferred home from the available selection
✔ Book your home by making an online payment of just Rs. 1,00,000.
✔ Fully-refundable booking amount.

Book Now: https://www.providenthousing.com/freedomonlinehomefest 
#FreedomHomeFest #GoodByeRentals
#BiggestOnlineHomeFest #ProvidentHousing
*T&C Apply

Follow Me!

Archives