The budget 2020 is a surprise to various sectors. Numerous real estate sectors are surprised by the budget of 2020. Not every industry received the attention of the finance minister, but there are several demands which have been listed.
The real estate center is one of the standing tall industries of the metropolitan cities, like Hyderabad, Bangalore, Mumbai, etc., and balances and sustains the Indian economy at its best. The new income tax slabs have affected the entire economic process of the country.
In a busy and developed city like Hyderabad, various people are settling rapidly for doing their jobs or pursuing higher studies. This has led to high demand for real estate development in Hyderabad. The latest income tax slab might further alleviate this development to achieve the commitment of offering a sheltered house to all.
Our Expectation from the New Income Tax Slabs
We, the common people, usually keep a lot of expectations from the finance minister, regarding the budget plans, especially those related to the taxation scheme. Every taxpayer expects relaxation on their house property tax. In this regard, it is to be noted that in the last few budgets, this scheme of relaxation has been taken care of really well. As per the budget 2020, the government has committed to providing a house for all, by 2022.
To keep up to the expectations of the common people, the government will steadily start implementing plans for real estate development in Hyderabad, so as to facilitate the growth largely.
Present Scenario of the Real Estate Sector
It is important to notice that in the last three to four years, the real estate sector is facing a financial crisis. What remains constant is the market value of the house properties. So, these factors made the real estate sector ill-favored for certain investments.
Attractive tax incentives would enhance the demand and will help in boosting real estate development in Hyderabad. Besides, there are a few plotting development companies in Hyderabad, which provide the appropriate amount of money for various investment plans.
By rigorously researching the global scenario, it has been found that the housing cost in India is quite high. Charging a higher amount on the tax breaking system, based on the initial financing cost will make India’s housing sectors equivalent to that of the European and American nations.
How New Income Tax Slabs Affect the Land?
The new income tax slab did not mention about the approach of land reforms. If lands can be acquired easily, only then, the companies will look forward to setting up new factories. The attraction of foreign investors will be easy to gain if more transparency is brought to India’s outdated land record systems. This will improve and limber up the entire method.
While buying a new house, real estate buyers might lose major tax incentives. The tax incentives will be lost on account of paying a high rate of interest. The new personal income tax regime is responsible for this.
New Income Tax Slabs on the Real Estate Sector – The Good and the Bad
The plan also missed out on a significant announcement about the easing liquidity in the real estate sector. Many developers and introducers are in a major worry because of this. The sentiment of the buyers is severely dampened because all the projects are delayed.
Though there is good news, that the new slab of 2020 has extended the tax benefits for one more year. This is done for the development of low-cost housing. It will also provide an extra consideration of Rs 1.5 lakhs on the total amount of interest to the buyers of affordable homes.
The real estate development in Hyderabad is already found to reach the apex of aggressive growth. As per the reports, the real estate market of Hyderabad has registered an increase of 30% for the residential sectors. In the past few years, the residential sections that were unsold have declined rapidly. Over several years, the sale of the property meets an increment of 16%.
Evidently, the new income tax slab has made a great impact on the real estate sector. Though there are some beneficial features, it also possesses a few drawbacks. However, we still hope for a better tomorrow from the decisions of the government.
So, if you are interested in investing in the real estate market in Hyderabad, BBG India will be the best option for you. They are the best for providing various valuable projects according to one’s requirement. Building Blocks Group, the plotting development company in Hyderabad excels in the field of offering land, because of its integrity, transparency, development on a large scale and on-time delivery. So, if you want to buy a piece of land or a house, then contact BBG India immediately.