Budget 2021-22 wishlist: Here are the key challenges in real estate sector

Key challenges
 

• Given the market / pandemic situation, there is an overall fall in the fair market values of properties. The reckoner values (circle rates) have pretty much remained at the pre-Covid levels.  Such a situation leads to tax being calculated on deemed income basis.  

• Pre-sales have reduced significantly due to lack of customer confidence on delays in project completion.  This has created liquidity issues with residential developers.   

Industry ask

• Real estate transactions (immovable property or shares of property companies) between non-related parties to be exempt from deemed income provisions [such as 56(2)(x) and 43CA].