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The realty sector was in the news all through the year with the government
announcing several major policy initiatives such as the passage of the Real Estate
(Regulation and Development) Act 2016 and the amendment to the Benami
Transactions Act.(HT Photo)
The real estate sector was in the news all through the year, with the government
announcing several major policy initiatives such as the passage of the Real Estate
(Regulation and Development) Act 2016 and the amendment to the Benami
Transactions Act. But the most talked about was the demonetisation of Rs 500 and
Rs 1000 currency notes used mostly for real estate transactions.
1) Real Estate (Regulation and Development) Act, 2016: The Real Estate
(Regulation and Development) Act, 2016 which came into force in March 2016
has laid down a regulatory framework which will change the way the real estate
sector operates in India. It aims to enhance transparency, bring greater
accountability in the realty sector and set disclosure norms to protect the interest of
all stakeholders. Speedy execution of property disputes will also be ensured in due
course .
7) DDT exemption for SPVs to REITs: The Union Budget 2016-17 exempted
any distribution made out of the income of the Special Purpose Vehicles (SPVs) to
the Real Estate Investment Trusts (REIT) and Infrastructure Investment Trusts
(InvIT) from the levy of Dividend Distribution Tax. This paved the way for the
REIT model to become financially viable for retail investors.
10) Permanent Residency Status for foreign investors: The Union Cabinet
approved the grant of Permanent Residency Status (PRS) to foreign investors,
subject to various conditions and with a provision for renewal for another 10 years.
As PRS allows the holders’ spouse/dependents to take up employment in India, as
well as the purchase of one residential property for end-use, the end user pool,
mainly for high-end and luxury segment products stands increased which can
promote the asset class in a big way.
• Matters covered under Real Estate Laws – – Legal contracts and agreements; –
estate properties. – Taxation issues concerning real estate; – Preparing a plan and
monitoring the construction of a real estate; – Drafting deeds and contracts for
foreclosures.