Restructuring of loans for developers needed to be addressed
By Sunny Kataria, Vice President, Real Estate, OLX India There were many expectations from the union budget in 2020 for residential real estate. While the government has furthered its commitment to the affordable housing sector, many issues remain unresolved. To further incentivise home-buyers in the affordable housing segment, the deduction of Rs 1,50,000, announced in 2019, will be extended to loan sanction by one year. This brings much relief to residents. For developers involved in affordable housing projects, the extension of the tax holiday on profits by one year to March 2021, is a welcome move. Restructuring of loans for developers is one key issue that was expected to be addressed in this budget. This would have uplifted the overall sentiment of the real estate industry. Overall, it’s a very balanced budget and addresses the challenges of all the sectors including agriculture, manufacturing, education, healthcare, energy, and startups.
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