The moment which falls on last day February every year, witness to unveiling of most enigmatic civil document of country, the central budget finally arrives with some good news for housing sector in the budget speech of Finance Minister.

The fact that, ’Not everybody can be satisfied’ can be aptly applied on this budget too. There has been a mixed response to budget proposals pertaining to housing sector in this year’s budget presented on 29^th February. Some hail the initiative taken by the government but some are discontented with non-fulfilment of some long awaited demands of the sector. Below, we shall discuss in brief the budget proposals that shall decide the future course of the sector:

• A fillip given to realty sector in this year’s budget is removal of Dividend Distribution Tax (DDT) on Real Estate Investment Trusts. This will allow both commercial developers a liquidity option and retail investors to be a part in office realty market growth.
• An assessee who is into development and building of affordable housing projects in conjunction to  “Housing for all by 2022” will get 100% deduction subject to certain conditions on profits earned in such projects.
• This year’s budget has also ended ambiguity in respect to determination of full value of consideration for the purpose of calculating stamp duty value. It has been proposed to base the date of agreement for calculating full value of consideration for property sold as Stock in trade.
• . Another booster for housing sector is simplification of provisions in regard to unrealised rent and arrears. A new section (sec.25) is proposed to be inserted in which amount of rent received in arrears or amount of unrealised rent consequently shall be taxed in the financial year it is received or realized. A standard deduction of 30% on such has also been proposed.

These reliefs were a long standing demand of the industry and when provided will certainly be a booster for the sector. The thrust of the government on providing affordable housing has been propelled further with concessions it has proposed for houses costing less than Rs. 40 lakhs.

Realty sector with its contribution of 7.5% to the National GDP can increase it with more such incentives.