Gujarat – The National Real Estate Development Council (NAREDCO), Gujarat, organised a seminar on 5 August 2024 at Grand Ilogia, Sindhubhan Road. Under the hostship of Chairman NK Patel, President Sureshbhai Patel, and Senior Vice President Yogeshbhai Bhavsar, the seminar ‘Real Estate and Budget’ was held, during which various experts provided in-depth information on the impact of the budget on the real estate sector.
Three well-known speakers presented information on the effects of the budget on real estate through three different topics: Mr Dhinalbhai Shah, CA, on Direct Tax; Mr Jigarbhai Shah, Advocate, on Indirect Tax; and Dr V.V. Patel on Corporate Structure in Real Estate. They provided detailed explanations on how the budget directly affects the construction sector.
Topics covered in the seminar included property digitalisation, property indexing, GST on TDR and FSI, major changes in Jantri, tax implications of income tax searches, increased rights given to officials in law, and the provision of a block period of six years instead of ten years. Strategies for surviving competition in the large corporate real estate business were also discussed.
While the government of Gujarat has doubled the Jantri rates from April 2023, it is expected to reduce stamp duty. Experts expressed concern that if Jantri rates increase again, it will heavily burden property buyers. Although the capital gains tax has been reduced from 20% to 12.5%, the cancellation of indexation will increase the government’s revenue and burden the common man. This, along with the increase in Jantri, may lead to more financial strain.
About 35% of real estate sales go to government tax deductions, including GST, stamp duty, GST on material and labour, stamp duty on plots, plot deductions, FSI, income tax, and various other taxes.
A large number of developers, professionals related to real estate, CAs, and members of NAREDCO participated in the seminar and gained detailed information related to the real estate budget.
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