Budget 2018 – focus for economic development of the country – Pakshal Sanghvi

The budget was contrary to people’s expectations of being a populist budget as this is the last budget by the Modi Government before the elections in 2019. However, I personally feel that it is a good budget that has taken agriculture and rural areas into focus for economic development of the country. Real Estate as a sector was left out. However, this budget also took one step towards granting real estate sector an industry status by setting up an Affordable Housing Fund. This effort will help realize the ‘Housing For All by 2022’ vision of our Honorable Prime Minister and slowly but surely grant the real estate sector an industry status. The Finance Minister also mentioned about reducing the hardships faced in realty deals and addressed the anomaly under Section 43 CA to tax real estate transactions at their real value rather than the value arrived at by applying artificially higher circle rates. As per new announcement, if the circle rate does not exceed 5% of transaction value, no adjustment is required towards the capital gains on a real estate transaction. It will help in terms of some extra savings if there is parity between the market rates and the ready-reckoner rates. The five percent differential allowed from the ready reckoner rates will benefit the buyers at large. I feel that this is the right time for buyers who want to buy properties like these.