Impact of budget on real estate
The real estate sector had a number of expectations on the budget 2012. The major highlighted effect of the budget over the real estate sector are :
The budget proposed to open the doors for the External commercial Borrowing for specific affordable housing projects. The realty sector is hoping for an improvement of the liquidity of funds in housing sector.
The interest rate on the ECB loan availed from July 2012 to June 2015 is proposed to reduce the rate of tax deduction at source at 5% from the existing 20%.
Reduction of tax at source by 1% for purchasing an immovable property valued less than 25 lakh.
Increase in service tax from 10% to 12% will increase the price of the construction materials. Resulting into rise in property price.
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Source : Reuters
Affordable housing projects, Budget 2012, budget over the real estate, cost of apartments in India, cost of construction of housing projects, external commercial borrowing, Property price in India, Real Estate Sector
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