Kotak Sec, REAL ESTATE -BUDGET HIGHLIGHTS & IMPACT

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REAL ESTATE
BUDGET HIGHLIGHTS & IMPACT
n Enhanced limit in priority sector lending
Impact: Positive. Finance Minister has enhanced the housing loan limit from
Rs 2 mn to Rs 2.5 mn under priority sector lending. This move would be positive
for players focused on low cost housing.

n Extension of interest subvention
Impact: Positive. Interest subvention of one per cent has been extended to
housing loan upto Rs 1.5 mn where cost of house does not exceed Rs 2.5
mn from the present limit of Rs 1 mn where cost of house does not exceed
Rs 2 mn. This move would be positive for players focused on low cost housing.
n MAT on SEZ's
Impact: Negative. Sunset clause has now been proposed for availability of
exemption from MAT in case of SEZ developers and units in SEZs. Thus, from
1st April, 2012, SEZ developers or units operating in SEZs will have to pay MAT.
This would be negative for players developing SEZs.