Union Budget’16- A much awaited relief for home buyers

The Union Budget 2016 has, by far, turned out to be a win -win situation for all. From individuals to the corporate Inc and especially for those who are desperately waiting to buy their first home.

However, the budget states equal challenges as much as the opportunities it offers!

“This budget is welcomed &we congratulate honorable Finance Minister, Shri Arun Jaitley, for trying to meet the expectations of the consumers and addressing their concerns through the new reforms in the budget.
For the common man the following key measures assure better rewards:
a)    Rebates increased for earnings less than 5 lacs.
b)     First home buyers to get an additional deduction of INR. 50,000 on loan interest for loan amounts upto 35 lacs for houses less than 50 lacs.
c)    Women members get subsidy for gas connections for poorer households.

Many policies for the rural sector (total allocation of 87765r) will increase the output which will directly impact the economy favorably” stated by Mr. Ranjit Naiknavare, Director – Naiknavare Developers

He further adds“The three major aspects that have been proposed of real estate development are:
a.     Increase in HRA deduction (24000 to 60000 per annum)
b.    Removal of dividend distribution tax on REITS which will enable major investments in retail office and,
c.    Income tax benefits for projects with smaller flatsless than 60 sqm in non-metro cities if completed within 3 years which will ensure timely handing over of projects.

The vexatious land records are being digitized & this will help overall transparency in real estate projects which might encourage foreign funds capital inflow.

The current road construction stands at 16-18km per day & this will go up with additional  measures (additional 218000 Cr to be spent)  which will allow for 10000 km of roads in 2016- 17, that are proposed in the budget.

Also airports are being revamped and this will further ease travel and indirectly benefit the real estate.

At present, the current land acquisition act makes it difficult to acquire lands and the PSUs are encouraged to make land available for development.The shops and establishment act is being revamped & amongst other things, smaller high street shops will be allowed to be kept open
all seven days easing the requirements of the common man.

The Budget made a strong case for promoting start-ups in India with 100% tax rebate on profits announced for them for three years. This will encourage mixed use properties to cater for this segment. If there is some clarity on GST and implementation for the direct tax code, then we will see a much better growth for the economy.”


Mr.Ranjit Naiknavare concludes by giving out key highlights from the Budget, which could affect an individual:

1) 10 % Dividend Distribution Tax: Additional tax at the rate of 10% of the gross amount of dividend earned will be payable by the recipients receiving dividends in excess of 10 lakh per annum. Kindly note, this is for income from only company stock dividends and NOT from MF dividends.

2) 0.5% KrishiKalyanCess: Just like Swachh Bharat Cess, consumers will have to now bear introduction of KrishiKalyanCess of 0.5% on service tax for the welfare of farmers. So total service tax will be 15% from June 1st onwards

3) 40% of NPS Withdrawal taxfree: Up to 40% of the corpus withdrawal to be tax exempt in the case of National Pension Scheme (NPS). With an additional INR50000of tax benefit beyond 80C, NPS to become attractive for investors. The remaining 60% can be tax-free too, if used for buying an annuity.

4) Only 40% EPF withdrawal to be taxfree: To create a level playing field amongst retirement products, Government seems to be moving EPF from 100 % EEE regime to partial EEE regime to put it on par with NPS. This is applicable only on new investments from now on.

5) 1.5 % Service tax reduction for Annuity Policies: Service tax to be reduced from 3.5% to 1.5% on premium of single premium annuity policy from insurance companies and pension funds.

6) 60 K Deduction for House Rent: Deduction amount claimed against rent paid to be increased from 24,000 p.a. to 60,000 p.a. under Sec 87A. Not many know about this. Basically, this is useful to people staying on rent but do not have HRA as an income component.

7) 5,000 Rebate for Income upto 5 Lakhs: Rebate is increased from INR 2000 to INR 5,000 for an individual having annual income of up to Rs.5 lakh per annum. Now, such individuals can avail total rebate of Rs.5000 in an assessment year.

8) INR5000 additional Tax deduction for home buyers: First time home buyers to get an additional deduction of Rs.50, 000 on the interest component of EMI. The value of such houses should not exceed INR 50 lakh and loan 35 lakhs.

9) 15 % Surcharge on 1 Crore+ Income: Surcharge has been raised from 12% to 15% on the persons, other than companies, firms and cooperative societies having income above Rs. 1 Crore.

Outcome of Budget 2016 for Infrastructure and Roads Development

Budget 2016 has been released and certain reforms have taken place in the infrastructure sector. Here are the frontline points, mentioned in this year’s budget by India’s Finance Minister, Hon. Mr. Arun Jaitley:-

• Allocating funds worth of Rs.55,000 Cr for the construction of roads and highways; excluding  Rs. 15,000 Cr from NHAI bonds
• Total budget allocated to the Roads and Highway Construction is 97000 Cr which is inclusive of Pradhanmantri Gram SadakYojana (PMGSY).
• Total outlay of Rs. 2,18,000 Crores declared for Rail and Road development
• 10,000Kms of roads will be improved and 50,000Kms of state highways will be upgraded to National highways. The budget allocated for the same is Rs. 2,21,046 Crores
• Aiming to achieve 100% village electrification by 1st May 2018
• 10 public and 10 private sector educational institutions will be made world class
• 160 airports and airstrips can be revived in infrastructure
• 100% FDI will be enabled for the food products produced and marketed in India for the Food Processing Industry

Highlights of Budget 2016 for the real estate sector

With the rolling out of Budget 2016 by the central government, your requirements and expectations related to the real estate sector might have been paid heed to, by the government. You may also have your opinion, related to the real estate news from this year’s budget.
Here are the frontline pointers, revealed from Budget 2016, by India’s Finance Minister, Hon. Mr. Arun Jaitley:-
•    Service Tax Exemption for housing construction of houses less than 60 square metre
•    Incentives for newly started manufacturing companies and Small Scale Enterprises (SMEs)
•    Rent payers’ Deduction slab increased from Rs. 20,000 to Rs. 60,000, due to which, tenants would be benefitted.
•    Total outlay for infrastructure would be Rs 2,21,246 Crores in 2016/17
•    Allocation of funds, worth of Rs 55000 Crores for developing highway projects
•    DDT exempted from Real Estate Investment Trusts (REITs).
•    Quicker implementation of GST Bill and related reforms like Real estate regulatory bill, etc. which are pending before the parliament so far
•    Budget focus on infra and enhancing quality of life
•    Achieving the goal of housing for all by 2022
If you have any opinions on the above mentioned pointers, share them with us! We would be happy to hear from you about the expectations and the announced budget. Stay Tuned for some pointers on infrastructure development as declared during the Union Budget 2016.

Important Benefits from 100% FDI in India

Overview of FDI (Foregin Direct Investment) in India

FDI in the Indian Real Estate has witnessed a significant increase over the past few years as per the economic standards. This depicts India as one of the most lucrative and broad avenues for investments considering the increasing level of interest in investing in India among the foreign  investors.

Since the Indian government has permitted 100% foreign direct investments in the different sectors if the Indian economy, there has been 100% involvement in FDI in the real estate industry. This has not only encouraged the construction builders like us who are into residential and commercial property constructions, but also the ones into recreational projects.

Not limiting the investors to only the ones who are from the Indian origin, but, making investing in Indian real estate sector open for all foreign investors has shown huge inflow of investments in the recent years.

Benefits of FDI in Indian Real Estate 

•    Increase in foreign investments will ensure more organized real estate industry in India
•    It’ll lead to more professionalism in this sector
•    Advanced technologies can be used in the new age constructions
•    A healthy and competitive market environment will be created between both, the Indian investors and the foreign investors.

Hence, we, at Naiknavare Developers, look forward to more such policies which favor the growth of the Indian real estate as a whole. It is a motivation for us to bring in more professionalism and quality homes and properties for our investors and buyers from India and outside, without compromising on any parameters that contributes towards delivering precision and quality homes.

'Enable And Empower' - ET Realty

Naiknavare Developers welcome this objective with open arms and we look forward to more such plan from the Government.

Read below:

The ET Realty Newsletter read the following: 

Dear readers,

It is a welcome statement from Union Minister when he talks about the government planning to provide houses priced below Rs 5 lakh. Does the country need affordable and low-cost housing? Yes. But, this needs to be supported with good infrastructure and connectivity.

It’s a noble cause but the government’s role is essentially expected to be of an enabler and not of a provider. The government does know that very well and is acting upon it. That’s why we have been hearing about the push on infrastructure and improvement in connectivity.

The best way to make housing affordable is to increase its supply and improve connectivity to satellite towns that can accommodate mass housing projects.

For example, state government of Maharashtra has already drawn a plan to develop 100 sq-km city with private participation in Uran, situated around 50 km east of Mumbai. However, given the current economic growth centers in Mumbai, it’s unlikely that people would move to this new city unless a speedy mass-transit option exists.

Therefore, the key is infrastructure and better commuting options. If people in US are commuting from New Jersey all the way to Manhattan, a distance of over 70 kms; Mumbai has more options within a periphery of this distance that can be used for mass housing, provided the connectivity is good. And this can be a case for any urban and economic growth center across the country.

So rather than working on a plan to offer homes priced below a certain price tag, the government needs accelerate its speed at which infrastructure is being improved and affordability can be taken care of through higher supply.

While the government is taking steps to improve crumbling infrastructure in the country’s financial capital, the speed at which it is being done has to be enhanced. Several big ticket projects including coastal road and trans-harbour link will connect and offer more options for people to live out of choice, not out compulsion.

Thrust can be on empowering or enabling people with good infrastructure and not just building a roof on their head. 

Yours faithfully,

Times Group

Naiknavare Developers at Credai Pune Housing Festival 2016

How would you imagine a Housing Festival to be? Dull? Boring? Or something else?

Well! We too expected something similar, but on 17^th Jan 2016, at SSPMS Ground near Pune Station, a Housing Festival was organized by Credai Pune that blew away all our presumptions and brought us an entirely new approach towards such active festivals that uphold the tag of Dynamic Real Estate industry in Pune.

It was amazing to see the huge crowd that attended the exhibition. We too participated in the exhibition and were happy to see the kind of response we got from our fellow visitors. It was a completely new learning experience for us.

 With the crowd that emerged for exhibition, it was a clear indication of the rising demand for housing in the city and that the buyers were showing a lot of interest in knowing and understanding the various schemes provided by the banks and the financial institutions for home buying.

We received good response from our visitors and we take this opportunity to thank all our visitors and customers for the overwhelming response we received and also Credai Pune for organizing such a well planned Housing Festival for the builders and developers like us.

We wish to get more such opportunities to reach and connect with our customers and potential buyers in the coming months. This will not only help us connect with our valued customers, but also help us understand the demands of the new age buyers with more insights and in more depth.  This will enable us to come up with more customer centric ideas to develop not just better housing but better living for all.

We hope we grow just like the demand for properties in Pune and live up to the expectations of the buyers in the form of quality and experience that our projects provide our customers. 

Not Just Houses, but Homes by Naiknavare Developers

We all look for houses to have a home to live and that is where the difference between a home and a house comes into the picture. Having a home and having a house are two different things that we’ll understand with  an emotional outlook.

At Naiknavare Developers, 

we believe a home has the following elements that are difficult to find in a house:

• A home gives you the joy of having a smile cover your face as soon as you enter the space.
• A home has that comfort you desire.
• A home has the perfect ambience you always like to spend some peaceful time.
• Where your personal self is at ease.
• No matter how tiny or how big, you always have your favourite and special corner at home.
• World without your home is no world of your own. Your space turns the world for you.
• To be yourself, you do not require a person, you require a space you call ‘home’.
• Your first love becomes your home.
• The place where you want to watch your family grow over the years.
• The treasure of lovely memories that you cherish for life.
• And a lot more than one can imagine…

We believe, with our in-depth understanding of the difference between a home and a house, we are able to provide some of the much desired homes that most of the buyers in the city have been hunting for a while.  

Naiknavare Developers has always strived and will continue to establish not just housing options, but homes for the buyers who are looking for a home and not a mere house or an apartment.

If you have some memorable/funny/entertaining moments that you cherish with your family and friends at home, you can write to us or share with us on Facebook or comment below.