Union Budget for Real Estate Sector

Below are the aspects of the Union Budget 2007 that are relevant to the real estate sector brought to you courtesy Magicbricks

• Tourism infrastructure to get an allocation of Rs.520 crore as against Rs.423 crore last year
• Five year tax holiday for two, three, four star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad & Gautam Budh Nagar.
• Initiatives would provide impetus to growth of hospitality sector in NCR region in view of the upcoming Common wealth games.
• Allocation for National Highway Development programme to be stepped up from Rs. 9,955 crore to Rs.12,600 crore.
• Work on Golden Quadrilateral road project nearly complete. Considerable progress made on North-South, East-West corridor and likely to be completed by 2009.
• Tax free bonds to be issued by state-owned urban local bodies.
• Northeastern region will get Rs.405 crore for highway development.
• Road-cum-rail project over Brahmaputra in Bogibil, Assam.
• Total Budget for the Northeastern region raised from Rs.12,041 crore to Rs.14,365 crore.
• New Industrial Policy for the northeastern region to be in place before March 31.
• Section 80 IB not mentioned at all.
• Modified VAT applicable to developers.
• Commercial rentals included in Service tax.
• Textile parks: Allocation up from Rs.189cr to Rs. 425cr.
• MAT extended to IT companies.
• Annual target of 15 lakh houses under Bharat Nirmal Programme to be exceeded.
• Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.
• Excise duty on cement reduced from Rs.400 per tonne to Rs.350 per tonne for cement bags sold at Rs.190 per bag at retail market. Those sold above Rs.190 will attract excise duty of Rs.600 per tonne.
• Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.
• Rs.150 crore to be given to Ministry of Youth and Sports for Commonwealth Games and Rs.350 crore to the Delhi Government for the purpose.
• Rs.50 crore to be provided for the Commonwealth Youth Games in Pune.
• Export duty on iron ore and concentrate at the rate of Rs.300 per tonne. Excise duty for plywood reduced from 16 per cent to eight per cent.

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