“Keeping in mind the overall sentiments of the economy, the Finance Minister has presented a balanced Budget that aims to spur growth and control inflation. The Government has shown a firm commitment towards fiscal consolidation, a move that will boost investor confidence. The Government has promised to reduce fiscal deficit to 4.8% in 2013-14 from 5.2% projected in 2012-13. The specific demands of the real estate sector, especially the grant of industry status, have again gone unheard. However, by means of increasing household savings, the Government has provided some incentive to low cost housing by giving additional Rs. 1 lakh tax benefit for first time home loan borrowers upto Rs 25 lakh. This may not address the concerns in Metros where the cost of property is high, but will in some way spur demand in tier II and III cities where property cost is in the range of Rs 30-40 lakhs. In fact, reduction in abatement on homes and flats with a carpet area of 2,000 sq. ft. or more or of a value of Rs 1 crore or more, will marginally increase the cost of luxury homes. The introduction of 1% TDS on sale of immovable property worth more than Rs 50 lakhs will only increase compliance. Overall, the real estate sector would have needed a lot more at this juncture of the economy.”