Union Budget 2010 turned everybody’s attention towards it even before the actual budget was announced. India needs to review public spending and improve its fiscal position, Finance Minister Pranab Mukherjee said on Friday, kicking-off the presentation of his budget for the fiscal year that starts on April 1. Many industries saw raise and downfall in this union budget 2010 and it’s a fortune that real estate sector has fairly gained a good raise in this union budget. India’s troubled real estate sector is in desperate need of sop’s which could help boost demand for housing. The real estate sector received a shot in the arm on Friday after the 2010-11 budget proposed a slew of tax concessions and measures that could boost demand for the sector, sending their shares soaring. Real estate sector is expected to benefit the most from a move to raise tax slabs for personal income tax that will boost disposable incomes and could add to demand that has been steadily improving in recent months.

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Construction and real estate are the two major sectors which will likely win in the new union budget 2010.

* Construction and engineering companies are on proposal to invest 1.73 trillion rupees ($7.4 billion) on infrastructure in 2010/11.

* The capital good index was up 1.8 per cent by 0804 GMT, in line with the rise in the broader market.

* Few real estate firms after the budget proposed to give developers tax deductions on existing projects and relaxed norms for built-up area. The sector index was up 4.8 per cent. The BSE Realty index rose as much as 5.6 per cent in day trades, and the sectored index closed up 1.3 per cent.

* The Budget has decided to levy a service tax on the differential part of the pricing of an apartment of preferential location. So, the premium a builder charges for a preferred apartment is now under the service tax ambit. ‘‘This will lead to an increase in prices as builder will pass on this burden to the buyer,”

There are lots of analysts warning that the measures would translate into gains for the sector only if developers resisted a fresh round of price hikes.

Hence this union budget 2010 has marked up the real estate industry through various tax deductions and benefits to the builders and the buyers hoping that the up-coming year turns out to be flourishing for both the builders and buyers.

But from your perspective what do you think of this budget?” or “do you think that the budget has been influential enough to make people pre-pone their home buying decision?” Spell out your opinion and ideas on this topic which is always encouraged.

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The real estate sector received a shot in the arm on Friday after the 2010-11 budget proposed a slew of tax concessions and measures that could boost demand for the sector, sending their shares soaring. To see the full article click here.

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