Owners of unsold inventory are currently exempt from paying income tax on notional rent for a period of one year.
In a major push for the affordable housing segment, the Finance Minister also proposed to extend the benefits under Section 80-IBA of the Income Tax Act for one more year till March 2020.
Ratings agency CARE has said that the government's fiscal situation for 2018-19 has been an area of concern with revenue not keeping up with targets.
Union Budget 2019: Many property consultants expect the cash crunch to continue in the real estate sector, which relies highly on borrowing. Among its recommendations for the real estate sector, Ficci has said that the government should increase the income tax deduction limit for individuals on interest payment against loans taken for acquisition or construction of se...
The sector, which has seen some pathbreaking changes with demonetisation and the RERA Act since 2016 was hoping for a revival felt dejected with lack of emphasis and further reforms in the Union Budget 2018-19.
Experts were disappointed with no changes in the income tax slabs and absence of other direct measures that influence the real estate sector.
The real estate sector sees Union Budget 2018 as a balanced one with focus on affordable housing.
Industry players are expecting rationalisation of the GST rates from the current 12 per cent to 6 per cent and bringing stamp duty under the ambit of GST.
The property developers are adding to a pile-up of bad loans in India's banking sector, which is already struggling to manage a spike in stressed assets across several industries.