Modi 3.0 Budget 2024: From Tax Incentives To FDI; Real Estate Sector Looks At Union Budget With Hope

The Union Budget or the full-budget for the fiscal year 2024–25, will be presented on July 23. The parliamentary session or 'Monsoon session' will begin on July 22 and conclude on August 12.

The budget will be presented by the Finance minister of the country, Nirmala Sitharaman. This would mark her seventh straight budget. The Union Budget of Modi 3.0, like any budget that has been presented in the past, has been an avenue of hope oriented in expectations.

All sectors, irrespective of their size and magnitude, pin their hopes and aspire to expand their businesses through supporting measures from the government.

Simplification of Taxation

One such sector is the arena of Real Estate. The importance of real estate in any economy cannot be overstated. In many ways, it is at the core of stability in a free market paradigm.

Many opinion leaders in the industry have expressed their concerns and means to better the sector. The larger focus lies on tax incentives and the rationalisation of these policies for seamless.

One of the important opinion leaders in the sector, Prashant Sharma, President, of NAREDCO Maharashtra, also underscored taxes and said that there is a need for enhanced tax incentives for homebuyers. Sharma advocated for increased limits on deductions under Section 80C and Section 24(b).

This move, according to him, could boost housing demand. He also calls for a single window clearance system to streamline project approvals and incentives for affordable housing, including extending benefits under the PMAY and redefining affordable housing to include properties up to Rs. 1 crore in metro cities.

Shraddha Kedia-Agarwal, Director at Transcon Developer, also laid her focus on taxation and asked for tax benefits for homebuyers. In addition, Kedia-Agarwal also batted for reduced GST rates. She also brought attention to simplifying FDI processes. This simplification, according to her, could make the sector more attractive to foreign investors.

Affordable Housing In Focus

On the same lines, she also called for policies that make it easier for NRIs to invest in Indian real estate.

Another facet of discussion was affordable housing. Himanshu Jain, VP - Sales, Marketing & CRM, Satellite Developers Private Limited, highlighted the importance of continued support for affordable housing initiatives, especially in India's ever-expanding metro-cities.

 Jain also focused on reforms and incentives to boost commercial real estate and promote real estate investment trusts or REITs. REITs, according to Jain, will bring more capital to the sector.

With over 1.4 billion inhabitants, the third Modi government will surely have housing and, thereby, real estate on their minds.