The Union Budget for FY21 was being awaited with high hopes to act as a growth booster. Be that as it may, according to Shishir Baijal, Chairman & Managing Director, Knight Frank India- the budget missed the mark regarding industry expectations, with no significant announcement for accelerating growth.
Bringing down income tax rates with the eviction of exemptions, may not prompt any important lift to consumption.
The industry was trusting that the Government would transpire measures to support housing demand. However, the removal of exemptions under the new income tax regime, suggesting no tax benefit on principal and interest for home loans would be a dampener for the sector.
The expansion of benefits for affordable housing for the developers just as home purchasers by one year is the right direction. To the extent the financing limitation for the real estate sector is concerned, the government talked about upgrading the partial credit guarantee scheme for NBFCs, which again may not suffice for the ailing real estate sector.