Real Estate Tycoons Set to Make a Comeback with Budget Boost

Delhi: The interim budget has provided significant encouragement to the real estate sector, which had been adversely affected by central government measures like GST implementation and demonetization.

 Impact of Demonetization and GST

There were allegations that the number of home buyers had significantly decreased due to actions such as demonetization and GST. Consequently, the real estate industry faced severe impacts, and economic experts pointed out that the construction sector's decline led to job losses.

 Real Estate Budget Speech

Until a few years ago, real estate tycoons and brokers were a common sight not only in cities but also in villages. However, due to demonetization and GST, the presence of real estate tycoons dwindled. In this context, the current government's budget speech included several key decisions to stimulate the real estate sector.

 Rental Income

The tax exemption limit on income from house rentals has been increased from 1.8 lakhs to 2.4 lakhs. It was announced that rental income from houses would be exempt from tax for two years.

 Second Home

Previously, capital gains tax exemption was given for one house, but now the exemption will be extended to two houses, provided the capital gains are within 2 crores. If the owner stays in the second home, the rental income calculated for that house will not be taxed.

 Unsold Houses

Experts in the real estate sector mentioned that about 6 to 7 lakh houses in seven to eight major cities in the country remain unsold. They believe that the budget announcement could potentially bring relief to these unsold properties.