Budget expectations: Realty sector seeks industry status, higher tax relief for home buyers
Vijay C Roy
Chandigarh, July 10
As Union Finance Minister Nirmala Sitharaman prepares to present the maiden budget of Modi 3.0, the real estate sector has a lot of hope from it. While the sector is looking at a robust growth in 2024, it also expects the Union Budget 2024 to play a supportive role in propelling the growth. Let’s have a look at what they expect from the Union Budget:
Grant industry status
According to real estate players, this is an appropriate time to award industry status to the real estate sector so that it can avail cheaper credit facilities from financial institutions. “Granting Industry status to real estate will attract investments and streamline regulations,” said Pradeep Aggarwal, Founder & Chairman – Signature Global (India) Ltd & Chairman – Assocham National Council on Real Estate, Housing and Urban Development. The move will benefit the economy and also will give fillip to employment generation.
Single window system
A simplified single-window clearance system will expedite project approvals, reduce delays, and enhance overall project execution. It has been in demand by developers for many years now but they are anticipating that it would be really great if the government introduces it in the upcoming budget. This will considerably reduce delays thereby benefitting all stakeholders including the government, developers as well as end users ie home buyers.
Revise GST input tax credit
Revising the GST input tax credit rules will reduce property prices and increase transparency. In addition to this, a GST waiver for under-construction properties, and incentives for private investment in affordable housing sector will be enabling.
Tax relief to buyers
The tax relief will eventually lead to more liquidity in the hands of the buyers. The developers expect that the upcoming budget should provide greater benefits to the salaried class as they have played a pivotal role in record-high direct tax collections. One such step would be to increase the tax exemption limit on both the principal amount and interest paid on home loans. “Amid substantial rise in property value over the last couple of years, the current Rs 2 lakh tax rebate on housing loan interest should be enhanced to a minimum of Rs 5 lakh,” said Mohit Jain, Managing Director, Krisumi Corporation.
Hike in urban infra allocation
Increased budget allocations for urban infrastructure and lower stamp duty rates for property transactions or waiver for first time home buyer from stamp duty will stimulate real estate growth.
Reintroduce CLSS scheme
Given the government’s ongoing push for housing for all, the developers also anticipate the relaunch of the CLSS (Credit Linked Subsidy Scheme), which will boost housing demand across various segments. Also, they wish that the definition of affordable housing to include homes up to Rs 75 lakh with a larger carpet area of 90 sq meters.
