REALTY SECTOR UPBEAT ON I-T EXEMPTION
Realty majors found cause to cheer the budget on concessions extended to other sectors.
Ravi Ramu, Director, Puravankara Projects Ltd, said reverse mortgage proceeds not to be treated as income tantamount to a tax free pension for home owners post-retirement and should provide a fillip to home builders, since owning a home in old age has now become more attractive from a return, and an old age financial security perspective.
The introduction of a right of set-off of dividend distribution tax paid by a direct subsidiary of a parent company with the DDT paid by the parent will be a large benefit to real estate companies who have, or intend setting-up subsidiaries.
Construction costs are expected to come down due to duty and Cenvat reduction. The housing sector will take a boost due to the increase in income-tax exemption limit and new tax slabs will increase affordability of EMIs.