Realtors heave sigh of relief over 2-yr tax exemption on unsold homes

Source: The Hitavada      Date: 03 Feb 2019 09:41:51



SITTING on 6-7 lakh of unsold units due to poor demand, cash-starved real estate developers heaved a sigh of relief after Government extended tax waiver on notional rent on such flats for 2 years from 1 year earlier. Developers and consultants feel that this Budget proposal would benefit developers of major 7-8 cities, particularly those from Delhi, Mumbai where unsold units are maximum. Finance Minister Piyush Goyal proposed to extend the period of exemption from levy of tax on notional rent on unsold inventories from 1 year to 2 years.

The period would be counted from the end of the year in which the project gets completed. Commenting on this proposal, ANAROCK Chairman Anuj Puri said, “This is a welcome move and will benefit the housing sector, as currently there are more than 6.73 lakh unsold units across the top 7 cities”.Motilal Oswal Real Estate Fund Head Sharad Mittal said this would give the developer community breathing space to sell off their unsold inventory in a tough market. Mahagun Director Dhiraj Jain said this is a relieving step for developers, while Sumadhura Group CMD Madhusudhan G said this proposal would give “slight relief”. Apart from this, realtors hailed decisions like exempting tax on income up to Rs 5 lakh and incentives provided on the purchase of the second home.