One of the most awaited events of the year was Union Budget 2016-17, which was unfolded on 29 Feb 2016. So, being a Real Estate company, we will tell you its benefits on Real Estate and how it helps buyers to maintain the weight of their pocket.
A shrewd property buyer or investor should have the right knowledge of the market and the budget phrases must be on the tips in this case. Let’s decode its key points meant to benefit Home buyers in next financial year:
- Deduction of additional Interest of INR 50,000 per annum:
For the first-time home buyers, the government has proposed to give deduction for additional interest of INR 50,000 per annum for loans up to INR 35 lakh sanctioned during the next financial year, provided the value of the home does not exceed INR 50 lakhs. This announcement will benefit first-time home buyers looking for the properties in affordable segment, like in Ghaziabad or Noida Extension.
- 100% Tax rebate on Startups:
For promoting start-ups in India, a 100% tax rebate on profits for three years was announced. It will ultimately boost the demand for mixed use properties in metros where entrepreneurs can reside and run their venture.
- Boost to Suburban regions:
Approximately 16-18 km of road construction per day has been achieved by the middle of the current financial year. Construction of roads and highways will amend the ways to reach even the exterior regions and boost the demand and utility of Suburbs.
- Infrastructure and Development:
The Budget has outlined revival plans for non-functional airports in partnership with state governments, with a vision to spend around INR 100-150 crore on each airport to make them functional again. This will be a boost to infrastructure in many tier-II and tier-III cities and is without a doubt positive for their real estate markets.
- Transparency in Real Estate:
The government will revive its national land record digitization scheme with a funding of INR 150 crore. This initiative is expected to increase the overall transparency in real estate and will have a positive impact on the real estate foreign capital inflows.
Above are the key advantages of Union Budget 2016 as far as Real Estate in India is concerned. Should you know more benefits, contact our Experts.
Information Source: Internet