Income Tax on Real Estate

Impact of Income Tax on Real Estate

Income Tax on Real Estate:

Income tax is a direct tax that a government levies on the income earned by its citizens, which might be through salary earnings or revenue generated in the form of properties like houses, real estate, and capital gains and from any other sources.

Out of all these, real estate is considered an important attracting goal for the tax office because it’s a kind of immovable property that you cannot hide, like income. The real-estate sector has assumed an important place in the Indian economy, with its source of GDP increase and showing a path of employment. With the sudden boost of urbanization and growth of corporate operations, there is a need for residential and commercial plots and assortment into avenues like working spaces &housing. Thus, this sector will be reaching a market size of USD 1 trillion by 2030 (in 2017, it’s only USD 120 billion) and contribute 13% to India’s GDP by 2025.  

This sector has faced many problems with sudden demonetization, delays in projects completion, high tax rates, and COVID-breakdown. Govt of India, during its recent budgets, proposed a higher tax levitation on this sector which weakens the growth of real-estate in many areas of India except in some areas like Jodhpur, where AshapurnaBuildcon Limited is creating historical growth in the field of real estate with an experience of 25 years delivering best commercial as well as residential properties in and around Jodhpur.

Why Jodhpur?

Jodhpur is a major tourist attraction in Rajasthan with well-built forts, palaces and some temples. Every year, thousands of local and international tourists visit the city to encounter its beautiful scenery and mesmerizing heritage buildings, forts. With this vast number of tourists throughout the year, Jodhpur has seen significant infrastructural growth, including luxury resorts, budget hotels, and rental apartments in recent years to please the increasing number of visitors. According to real estate analysts, tier-II and tier-III cities in India, such as Jodhpur, have increased growth in the real estate sector. There is a presence of large tracts of land for commercial development, which attracted many leading firms to explore the property in Jodhpur and its surrounding areas for new ventures. Also, one more reason is JDA which is the prestigious undertaking by Govt. of Rajasthan. 

What is JDA?

Jodhpur Development Authority was established with a vision of planning, coordinating and supervising the proper, orderly and rapid development of the Jodhpur Region by executing plans, projects and schemes for land.

Buying Property in Jodhpur:

One of the most significant advantages of buying property in Jodhpur is that land and property prices are low compared to other cities. According to a survey, the average property price in Jodhpur for 2019-2020 is 51.75 lakhs INR, which is far lower compared to other cities like Delhi (73.46 lakhs INR) and in Gurgaon (90-95 lakhs INR).

Recently, Govt. of Rajasthan announced that it is cutting down the DLC (District Lease Committee) rates, which will bring property prices down all over the state. With these taxation benefits, real-estate investors in Rajasthan see lower tax burdens compared to other states. Also, the revised GST rates on under-construction housing properties have been revised down from 12%-5%

On the other hand, a hike in property prices in Jodhpur has seen a vast increasing trend in the last few years. For instance, if we see villas in New Pali Road, they were sold at 23 lakhs in 2009, and today they sold them on the resale market for a range of 75-80 lakhs with a vast property price increase.  

Projects going in and around Jodhpur:

Out of various projects in Jodhpur with multiple dealers and constructors, AshapurnaBuildcon Limited has a huge reputation and fame in this constructing and real-estate sector with an experience of nearly 25 years making many people’s dream of having their own house or land alive. It is one of the leading Real-estate developers in Jodhpur, having a record in completing the project within 18 months of takeover in its early business setup. Till now, it has completed 35 projects with an area coverage of 36 lakh square yard housing area.

Despite having vast experience in this field, we have completed many projects in specified time providing high profile infrastructure with well-designed rooms in case of heritage projects like Ashapurna Heritage and basic kind of infrastructure with the facilities like water availability, parking lot, in and around the city providing economic budget-friendly to the customers with all the guidelines and approvals from the JDA.

Some of the running projects by our company include:

Ashapurna Basera, near Sangriya Road

Ashapurna Anmol, near New Rajasthan High court 

Ashapurna Heritage, near the Airport area

Ashapurna Aangan, near Banar Road, Banar.

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