Budget’s role A bigger anguish lies for the real estate industry in the State budgetary proposals. Escalation in cost of construction is likely to go up. Tax hike on buildings as well as on manufactured sand (M-sand) will have a negative impact on the market price of apartments. Finance Minister K.M. Mani has proposed to double the tax rates of buildings to mop up additional revenue for the State exchequer. However, the tax is being revised after a gap of 17 years. He also proposed to increase the fair value of land which was fixed some eight years ago. It was found that the fair value of land was much less than the market rates. Stamp duty Proposals have been made to revise the stamp duty for various dealings. However, the rates for all sale deeds registered in grama panchayat, municipality and corporation limits will be unified at 5 per cent, 6 per cent and 7 per cent respectively. The runaway inflation and the depreciation of the rupee have hit the middle class especially the home loan borrowers and home aspirants. This uncertainty in the real estate sector will continue till the Lok Sabha elections, and even beyond depending on the poll outcome, experts say.
Posted on: Sat, 01 Feb 2014 05:34:06 +0000
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