The Union Budget 2016 was unveiled by Finance Minister Arun Jaitley on Feb 29, 2016. The minister announced nine pillars of his budget- Agriculture, Education, Financial Sector Reforms, Ease of Doing Business, Tax Reforms, Skills and Job Creation, Development of Social Sector including healthcare, Rural Sector and Infrastructure. This budget majorly focuses the poor and the urban populace of the country. To make urban living easier for the lower middle class, the budget has brought several reforms to boost affordable housing in India.
Here are a few important points of budget 2016 for the real estate sector:
No Dividend Distribution Tax (DDT) on REITs
The Real Estate Investment Trusts (REITs) have been a hot topic in Union Budget since 2014. It only got approval after much debate in 2015. The main impediment in the way of REITs was the imposition of DDT because of which developers were averse about raising funds for their projects through REITs. But now that the DDT on REIT has been done away with, builders can find more affordable ways of financing their projects. Investors will also be confident about putting their money in the real estate sector. [Read more…]