Budget 2017: Granting of infrastructure status to affordable housingis a push towards ‘Housing for All’ says Tapan Sangal

Hyderabad: The top real estate and regulatory specialists in India Tapan Sangal says that “The granting of Infrastructure Status to affordable housing will give impetus to the accomplishment of the stated goal of “Housing for All”. The Infra status will provide access to easier financing and associated tax benefits for such projects. The change in norms for constructed area from built up to carpet will also result in many more projects coming under the affordable housing tag, especially in the four metros. The increase of time limit for completion from three to five years for availing 100% profit deduction for affordable housing will encourage more realtors to take up such projects.

He also added that some of the other benefits accruing to the segment included the lowering of the holding period for built-up properties for availing long term capital gains from 3 years to 2 years as well as granting respite in the notional rental income for property for a year. For the property being developed under JDA, one is now liable to pay capital gains tax only in the year of completion. The addressing of these small but crucial issues that were being demanded are likely to benefit the sector tremendously.

However one major disappointment was the non granting of industry status to the Real Estate sector.”

Tapan Sangal has led the Strategy, Planning, Regulatory, Funding, Business Development and Strategic Alliances (JD/JV/DM) functions across the realty companies that he has been associated with and provides strategic counsel and direction to the top management/board of the organizations.