Nirmala Sitharaman tabled the Union Budget 2023 in Parliament yesterday. There were several major announcements in the Union Budget 2023 directly or indirectly related to the real estate and infrastructure industry. Investments in infrastructure and productive capacity have a large multiplier impact on growth and employment. After the subdued period of the pandemic, private investments are growing again. The Budget 2023 takes the lead once again to ramp up the virtuous cycle of investment and job creation.
FM increased the PM Awas Yojana budget by 66%, bringing it to over ‘79,000 crore.
Additionally, FM recommended capping the deduction from capital gains on residential property investment under sections 54 and 54F at 10 crore. Limiting the income tax exemption from the revenues of extremely valuable insurance policies.
Among others, she also suggested changing the guidelines for calculating capital gains in cases of joint property development to include the money received in the form of a cheque or other kind of payment.
Atul monga, CEO and co-founder, basic home loan, said: “The increase in outlay for the PM Awas Yojana to Rs 79,000 crore will be a major boost for low-cost housing providers. While lakhs of people have already benefitted from the scheme, the announcement of its enhancement will be a positive step towards providing affordable homes to people and meet the existing housing shortage in the country.”
Ramani Sastri – Chairman & MD, Sterling Developers, said: “The Union Budget has provided indirect boost to the real estate sector with enhanced capital expenditure and gift to the salaried class by providing increased disposable income at hand with the higher tax rebate. The PM Awas Yojana hike is great news in the affordable housing market and this increase in allocation will help the government achieve its goal of providing affordable housing to all and contribute to the overall growth and development of the country. Reduction in compliance and relaxation of regulatory provisions is a welcome move from ease of doing business perspective and will aid the growth of the real estate sector. The enhanced focus on digitalisation too which will create more jobs and propel demand for residential real estate across the country. The unwavering focus on infrastructure is a welcome move for the industry. The buoyancy which we have witnessed in the realty sector in the recent past is set to continue in the near term. While the budget has addressed some key issues, there are currently several grey areas when it comes to schemes, taxation, funding and others where the government should provide a helping hand going forward. It is imperative for the government to pay special attention to the real estate sector and have provisions for its well-being in the near future. Overall, we believe that the union budget has ushered in a balanced combination of reforms and regulations, which will, in turn will contribute positively to India’s growth story.”
Dhaval Ajmera – Director at Ajmera Realty Infra India Ltd., said: “The impetus of capex spending for infrastructural development shall unlock new potential for the development of real estate assets.”
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