RICS South Asia [Apr 2012]

For the real estate and housing sector, this years’ budget has exceeded expectations given the pressure on fiscal situation. Most importantly, it has taken into account the crying need to focus on affordable housing sector by allowing ECB for low cost housing, road as well as construction and setting up of a credit guarantee trust fund. Withholding tax on ECBs for affordable housing has been reduced from 20% to 5% for 3 years and this move will help ease the liquidity in the sector.  Also, investment linked deduction of capital expenditure in affordable housing is proposed to be provided at 150% as opposed to 100%. All these measures will encourage supply of low cost housing. -Sachin Sandhir, MD, RICS South Asia

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