Home loan expected to increase income tax exemption limit of 2 lakh, home buyers can get many more gifts
Small houses get 90 percent loan on the house
There has been a demand from industry organizations that a home loan of up to 90 per cent of its cost should be given on affordable houses of 30 lakh rupees or less. It is better if MIG and HIG are also brought within this scope. The annual income tax exemption limit on home loan interest should be completely abolished or taken to a new level.
Capital gains tax is 10 percent
Industry organizations and builders demand that long-term capital gains (LTCG) be brought to 10 percent. To avail the benefit of long term capital asset, the time period to remain the holder of any residential property is required to be reduced from the current 24/36 months to 12 months.
Government should increase HRA for rental houses
There is a need to increase the scope of HRA in tax exemption to encourage rental houses. For rental projects like commercial buildings, increased depreciation rates and losses from rental income should be allowed to “carry on”. The real estate sector will also benefit from extending the completion period of affordable housing to six years.
Increase the scope of subsidy scheme on households
Affordable housing projects (Affordable Housing) It will also be better to provide loans at concessional rates. With the benefit of Credit Linked Subsidy Scheme (CLSS) given to all sections, a large number of people will come forward to buy houses.
Government should promote rental housing
Rental Housing (Rental Housing) To boost the deduction of 30 percent from the annual rental income (for maintenance purpose) should be increased to 50 percent. This will not only improve ROI, but will also encourage people to invest in residential properties for rent.
Become a special fund for real estate
The government has already announced a stress fund of Rs 25000 crore to help the real estate sector. However, the industry has raised the demand to create a fund of Rs 1,25,000 crore through HFC / NBFC for the projects that have been in trouble and stuck. This will pave the way for rapid evaluation and approval of loan proposals for the project.
Government should consider subvention scheme
Real estate developers have requested to lift the ban on the Subvention Scheme to directly benefit home buyers. The subvention scheme has the facility to give money according to the pace of construction of the house and repay the loan in easy installments. RBI had banned this scheme.
Encouragement needed to overcome Corona
National President of Naredco, Dr. Niranjan Hiranandani said that the Kovid-19 epidemic has affected countries around the world. India’s real estate sector is also not left in the depths of despair. Financial incentives announced under Self-reliant India have given a renewed boost to consumer demand, but real estate can be back on track if land buyers are given facilities like tax exemption, more loans. The chairman of the institution, Rajiv Talwar, said that interest on home loans should be fully allowed under income tax exemption without any ceiling. Losses from house property should be allowed to be fully adjusted against other heads of income.
Tax exemption for developers to be 2 years
Pradeep Aggarwal, president of Assocham National Council on Real Estate, Housing and Urban Development, said that tax exemption for developers in affordable housing was given for 2020. After battling the epidemic for a full year, it would be encouraging for developers to get this rebate for 2 years. Banks should provide project based (land and construction) money at 6%. For the first time homebuyers (in Affordable Housing) exemption in stamp duty is required. Technology assistance (eg aluminum shuttering) should be exempt from custom duty for construction of affordable housing from other countries.