“Both the commercial and residential real estate sectors have been adversely impacted over the last year. The government is expected to, and would do well to, come out with budget announcements to support the sector, in line with the overall expected themes of growth and recovery. The government may accede to industry’s demand of allowing set off of GST paid on input materials during the construction phase against rent and other income from property upon completion. The lack of input credit is currently seen as a dual tax levy on asset owning commercial real estate developers that rely on leasing or rentals. Another welcome measure would be increasing affordability of homes by providing greater income tax benefits for new home buyers. Other areas that may see governmental fillip are affordable housing, further incentives for home loans, and liquidity and credit extension measures for developers”. Vivek Chandy, Joint Managing Partner, J Sagar Associates.
