Today’s Union Budget announcements have generated a positive buzz in the real estate sector. The direction to reduce stamp duty for women is expected to increase property ownership among women, promoting financial independence and gender equality. This initiative can boost demand in the real estate market, stimulating economic activity. Additionally, it encourages joint ownership, leading to more equitable property distribution within households. Also, along with announcement of developing a National Industrial Corridor is likely attract investments, create job opportunities, and enhance the overall economic landscape. The emphasis by the FM on connectivity will surely lead to increased infrastructure development. New corridors in all modes that are in development and will be crucial for India’s growth and development. Finance Minister Nirmala Sitharaman announced significant changes in the Union Budget concerning property sales. The indexation benefit, which allowed property sellers to adjust the purchase price for inflation using the Cost Inflation Index (CII) issued by the Income Tax Department, has been removed. This means there would be equitable taxed and ensure transparency. In addition, the rate of long-term capital gains tax on property sales has been reduced from 20 percent to 12.5 percent. These changes are likely to have a substantial impact on the real estate market, influencing the way property transactions are taxed.
The digitization of land records and other technological reforms within the regulatory framework will greatly improve transparency in the real estate sector. These announcements, along with a focus on the affordable housing segment, are poised to drive growth and create a more robust and transparent real estate market in India.
