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The property sector has sought a slew of tax breaks in the budget, including a one-stop settlement system and raising the limit on interest deduction on home loans to Rs 5 lakhs from the current 2 lakhs, to stimulate demand. household. including. Furthermore, the industry is hopeful that this time the Finance Minister will consider granting industry status to real estate, which may prove to be a game changer for employment and development in this sector.
Royal industry body CREDAI (Confederation of Real Estate Developers Associations of India) has also sought changes to the definition of affordable housing and infrastructure status for the sector. CREDAI National Chairman Harshvardhan Patodia expressed his hope that the upcoming budget will provide a much-needed boost to infrastructure development and the housing sector through various amendments, relaxations and extensions.
Patodia said that we are asking the Ministry of Finance to further reduce the interest for homebuyers for the tax exemption under section 24(b). This will strengthen home buying sentiment, especially at a time when the outbreak of the third wave of the pandemic has begun and times are very difficult.
Delayed approval increases cost
The real estate industry says that delayed project approvals increase the cost of building homes, which in turn hurts buyers. Along with this, it also affects sales, so real estate companies are also affected. Currently, property projects require approval from various departments including power, water, highways, fire, along with property regulator RERA, which delays projects.
The concession will increase the demand for housing
Rakesh Yadav, CMD, Antriksh India Group, says that the residential property market is facing a crisis since the Corona pandemic. In such a situation, we demand that the Finance Minister increase the interest deduction limit on home loans under Section 24(B) to Rs 5 lakhs in the budget. Also, change the definition of affordable housing. Apart from this, a stress fund should be announced in the budget for this sector. These measures and the granting of concessions to buyers will increase the demand for housing, which will strengthen the real estate sector. This will also increase employment opportunities.