According to the Union Budget 2007-08, tax concession under 80 IB for construction under 1000 square feet in Delhi and Mumbai and under 1500 square feet built up in Bangalore will come to an end.
In accordance to this news, investment advisor SP Tulsian feels that this will be negative for property developers. He says, "Builders and developers were trying to circumvent by making two agreements; I think, this was more to plug that loophole. But definitely, per se, this is negative for the property developers."
In his view, listed stocks like Sobha Developers will be affected since they have full concentration in Bangalore and Mumbai. Also, in the NCR region, companies such as Parsvnath and Ansal could feel the pinch.For more such reports, log on to www.moneycontrol.com
