“Keeping in mind the overall sentiments of the economy, the FinanceMinister has presented a balanced Budget that aims to spur growth andcontrol inflation. The Government has shown a firm commitment towardsfiscal consolidation, a move that will boost investor confidence. TheGovernment has promised to reduce fiscal deficit to 4.8% in 2013-14from 5.2% projected in 2012-13. The specific demands of the real
estate sector, especially the grant of industry status, have againgone unheard. However, by means of increasing household savings, theGovernment has provided some incentive to low cost housing by giving
additional Rs. 1 lakh tax benefit for first time home loan borrowersupto Rs 25 lakh. This may not address the concerns in Metros where thecost of property is high, but will in some way spur demand in tier IIand III cities where property cost is in the range of Rs 30-40 lakhs.In fact, reduction in abatement on homes and flats with a carpet areaof 2,000 sq. ft. or more or of a value of Rs 1 crore or more, willmarginally increase the cost of luxury homes. The introduction of 1%TDS on sale of immovable property worth more than Rs 50 lakhs willonly increase compliance. Overall, the real estate sector would haveneeded a lot more at this juncture of the economy.”
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