In the Budget 2017, Union Finance Minister Arun Jaitley had emphasized on two initiatives – industry status to low-cost housing and the easing of capital gains tax norms.
The infrastructure status to affordable housing development, they said, has been complemented by raising the allocation to the rural housing programme by about 50 percent.
“Affordable housing developers will now be eligible for several Government incentives, subsidies, tax benefits and most importantly institutional funding,” said Neeraj Bansal, Partner and Head – BCRE Sector at KPMG in India.
Anshuman Magazine, Chairman for India and South East Asia at CBRE said, “The government has also been accommodating of the concerns of the real estate sector. The relaxation on long term capital gains, joint development agreements, tax rebates for builders will help reduce their tax liability”.