Realty developers not pleased at many Budget details
There are devils in the real estate sector. Though the Budget gave some hope to home buyers in the form of tax savings and less interest rate.
The Budget announced a maximum tax savings of Rs 20,000 for those earning an annual income up to Rs 5 lakh and up to Rs 50,000 for those earning up to Rs 8 lakh. This additional income is likely to find its way towards buying homes.
This Budget also extended the interest rate subvention on a housing loan up to Rs 10 lakh where the house price is up to Rs 20 lakh, announced in the earlier Budget, to March 31, 2011. But, many developers are unimpressed. “Overall, home sales may go up, but there is no incentive for developers to launch more affordable housing projects.
However, the hotel industry gave a thumbs-up to the finance minister’s move to give investment-linked deduction to new hotels in two-star or above categories.
It’s a good measure that will boost investment in the tourism sector, with high employment potential. Also, the fact that the benefit is made available to hotels across the board will boost investment in all categories.
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