With some well-composed policy reforms of the government coming into their own in the year 2017, it is hoped that the budget that is to be announced soon will also give some much-needed impetus to the real estate sector in the country.

CLARITY ON SOME THRUST AREAS THAT ARE EXPECTED:

CLARITY ON TAXATION: The overall policies are expected to ease, which would serve as a major boost in giving a thrust to the real estate demand side. This in turn, will help the sector to revive. On the supply side support is required for the industry in terms of a broader rationalization of land acquisition policies, project-based, customized financial aid from governmental agencies, and the extension of special status benefits, especially in the priority sector status – apart from interest rate subventions and other reform measures in the overall construction development sector. Also, mainly from the tax perspective, the scope of housing projects that fall under the tax bracket umbrella too need to be widened.

CLARITY ON KEY TAXATION ON JOINT DEVELOPMENT AGREEMENTS

This is an area which has been in the gray, since a long time.

CLARITY ON RENTAL FROM COMMERCIAL PROPERTIES

There is a need for greater clarity on income as rentals from properties that are commercial, and when they are developed and leased. A lot of effort and costs are being incurred by the industry in fighting litigation suits on this matter. Greater clarification on this important issue is the need of the hour.