FINANCE BILL, 2017 Budget Compounds Complexity in Real Estate Sector

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The Tax Publishers FINANCE BILL, 2017 Budget Compounds Complexity in Real Estate Sector P. Jitendra Kumar The learned author taking note of the two proposed amendments in the Finance Bill, 2017 concerning reality sector refers to frightening prospects arising therefrom in a sector already suffering from blockage of investments in unsold stock-in-trade. He requests the Finance Minister to take in view his concerns in that regard in relation to the amendments in Section 23 and 71 of the Income Tax Act proposed respectively via clauses 12 and 31 of the Finance Bill, 2017. In the Finance Bill 2017, two amendments proposed in budget that concern Real Estate sector reflect serious shortcomings. These two amendments give an impression that the force to make such amendments is driven by mere urge for tax collection, rather than welfare of real estate, a vital sector. Budget is a policy statement, prepared for driving an economy forward. But, these two provisions might cause serious hardship and have critical consequences both on supply and demand front of already languishing Real estate sector. It is a well-recognized economic theory that a nations economy acquires boost from real estate sector as it impacts core sectors involved in overall growth of economy. The successive Governments have conceded inability to meet huge demand of housing, both residential and non-residential and realized imperative need for participation from private sector to overcome the issues that haunt the growth in the real sector. Several Past budgets, in line with the above philosophy, gave thrust to this real estate sector by various incentives, inter alia, granting specific tax relief under the Income Tax Act, witnessed through conducive provisions since the Financial Year 2000 until 2012. Real estate sector, on its part, has reflected growth with these measures. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

FINANCE BILL, 2017

Budget Compounds Complexity in Real Estate Sector

P. Jitendra Kumar

The learned author taking note of the two proposed amendments in the Finance Bill, 2017 concerning reality sector refers to frightening prospects arising therefrom in a sector already suffering from blockage of investments in unsold stock-in-trade. He requests the Finance Minister to take in view his concerns in that regard in relation to the amendments in Section 23 and 71 of the Income Tax Act proposed respectively via clauses 12 and 31 of the Finance Bill, 2017.

In the Finance Bill 2017, two amendments proposed in budget that concern Real Estate sector reflect serious shortcomings. These two amendments give an impression that the force to make such amendments is driven by mere urge for tax collection, rather than welfare of real estate, a vital sector.

Budget is a policy statement, prepared for driving an economy forward. But, these two provisions might cause serious hardship and have critical consequences both on supply and demand front of already languishing Real estate sector.

It is a well-recognized economic theory that a nations economy acquires boost from real estate sector as it impacts core sectors involved in overall growth of economy. The successive Governments have conceded inability to meet huge demand of housing, both residential and non-residential and realized imperative need for participation from private sector to overcome the issues that haunt the growth in the real sector. Several Past budgets, in line with the above philosophy, gave thrust to this real estate sector by various incentives, inter alia, granting specific tax relief under the Income Tax Act, witnessed through conducive provisions since the Financial Year 2000 until 2012. Real estate sector, on its part, has reflected growth with these measures.