There is a fair amount of enthusiasm in the State over Union Finance Minister Arun Jaitley’s proposal to give tax breaks to real estate developers who build affordable houses. Earlier, the exemption of tax on profits was extended to apartments with a super-built-up area of 60 sq metres. This has been changed to 60 sq mts carpet area which is a more realistic way of measuring space. Builders are now of the view that it is possible to build a 2BHK with the given area, but the key to making housing cheaper lies in the hands of the builder. Will they pass on the tax breaks to buyers? If they do then housing will become cheaper. If they don’t, then only they benefit. It’s a million dollar question.
