National Real Estate Development Council Gujarat Hosts Seminar on ‘Real Estate and Budget’

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.

If you have any objection to this press release content, kindly contact [email protected] to notify us. We will respond and rectify the situation in the next 24 hours.