'Budget will curb black deals in housing sector'
Transaction beyond Rs 20,000 for purchase of immovable property prohibited
Mar 02, 2015
Source : The Times of India

 

BHUBANESWAR/CUTTACK: The Budget proposal to prohibit cash transaction beyond Rs 20,000 for purchase of immovable property is likely to cleanse real estate sector of black money in the twin cities of Bhubaneswar and Cuttack.

Real estate insiders said cheque payment or electronic transfer of money would curtail underhand dealings, as 'unaccounted for cash' rule the real estate market here.

Finance minister Arun Jaitley has proposed to amend the Income Tax Act for the purpose. "It would be a tricky situation and may curb fund flow further," said a real estate developer.

While over dozen developers have come under Crime Branch scanner for dubious land deals in past two years, flow of black money from chit fund and mining to realty was cited as reasons for unexceptionally high cost of housing in state capital.

On record, the developers said it would help bring in transparency. "The move will pin down black sheep in the profession. We welcome it," said president, Association for Odisha Realestate Developers Umesh Patnaik.

National joint secretary, Confederation of Real Estate Developers Association of India, D S Tripathy too welcomed the transparency move. He, however, described the budget as disappointing as the impact of increase in service tax from 12.36% to 14% will raise housing cost. "The Budget, in treating real estate with neglect, leaves the current problems of real estate where they are," he said.

Traders feel the Budget will help check flow of black money in other segments of business as well. Traders at Malgodown, state's biggest wholesale commodity market in Cuttack, said the proposed new law to tackle black money with tough measures will help business to grow in a fair manner.

"The proposed law for imprisonment up to 10 years and 300% penalty on tax for concealing income and assets will go a long away in bringing transparency in any business," said joint secretary, Cuttack Chamber of Commerce, Srikant Sahoo.

Houses worth Rs 25,000 crore are in different stages of construction in Bhubaneswar and its neighbouring areas.

Developers are refraining from new projects with around 30% houses remaining unsold.

Latest Realty News

Budget-2015:-DLF,-Embassy-Blackstone-may-rush-for-REIT-listings
Mar 02, 2015
BENGALURU | NEW DELHI: With the finance minister providing taxation clarity on REITs in the budget,a host of real estate players are expected to rush for REIT listings
Post-budget,-realty-prices-may-shoot-up
Mar 02, 2015
Mumbai: Home buyers will have to shell out more money as the proposal to increase the service tax in the Union Budget is expected to increase the cost of residential property
Builder’s-good-offer-throws-light-on-bad-days-of-realty
Mar 02, 2015
Chandigarh: With a builder in Peer Mushalla area offering “buy one 3-BHK flat and get one 1-BHK flat free” to attract buyers, the slump in the real estate market in the area has come into a sharp focus
Flaws-in-Regional-Development-Plan-has-stymied-Realty-Projs-in-Goa:-Dr-Jagannath-Prabhudessai
Mar 02, 2015
Goa: Real Estate in Goa had almost doubled in the last ten years. However, presently the state is staggering under the pressures of the inherited economic slowdown
Govt’s-‘Housing-For-All’-by-2022-a-missing-link-in-Union-Budget-–-2015,-Experts
Feb 28, 2015
Bhubaneswar: The Union Government’s much touted announcement ‘Housing for all by 2022’ seems to have lost its significance
'Realty-sector-will-have-to-wait-a-bit-longer-for-succour'
Feb 28, 2015
BENGALURU: An already comatose real estate industry will have to wait a bit longer for succour
Builder,-6-SRA-officials-booked-after-man-alleges-land-grab-in-Goregaon
Feb 28, 2015
MUMBAI: A developer, six officials of the Slum Rehabiliation Authority (SRA) and three others have been booked by the Vanrai police
PM-says-ready-to-change-land-Bill-if-it's-anti-farmer
Feb 28, 2015
New Delhi: Prime Minister Narendra Modi offered to make changes in the contentious land acquisition Bill, if the Opposition parties felt any of its provisions were anti-farmer
Minister-asks-CREDAI-to-take-up-affordable-housing-projects
Feb 28, 2015
Visakhapatnam: Andhra Pradesh Panchayat Raj Minister C Ayyanna Patrudu has asked real estate developers body CREDAI to take up housing projects
After-green-hurdle,-stamp-duty-blow-to-Noida-flat-buyers
Feb 28, 2015
Noida: Nearly 30,000 homebuyers in Noida now face significant cost escalations when they register these properties

Latest Realty News Of State

Realty Talk's