new Delhi. The real estate sector has been badly affected by the Corona crisis. This has impacted not only real estate but more than 200 sectors connected to it. The sluggishness in the property market and its related sectors has had an impact on the country’s economy and employment market. Finance Minister Nirmala Sitharaman will have to take big steps to overcome this crisis. Let us also tell you what are the expectations from the budget from the people related to real estate.
Consider these demands
According to the CMD of Space India Group, under-construction houses now attract 5% GST. The rates on under-construction houses should be reduced to 0 per cent for a few months. Along with this, a separate rebate should be given to the home buyers on the payment of the principal amount of the home loan. Also, the tax exemption limit under Section 80C of the Income Tax Act on the payment of home loans should also be increased.
Get tax relief on home loan and personal income
Currently, under Section 24 of the Income Tax Act, there is an income tax exemption of Rs 2 lakh on the interest of home loan. Now is the time to increase it. This decision will help in promoting affordable housing. Along with this, the limit of deduction under section 80C needs to be increased to Rs 1.5 lakh. It has not changed since 2014. Also, there is a need to increase the personal income tax exemption limit after deducting company tax. These steps will bring more money in the hands of the common man. He will use it in his big dreams like home or car shopping. This will help accelerate the economy.
Cheap Home Buyers Get Concessions
In the budget, the loan to value (LTV) ratio for home loans should be increased to 90 per cent for cheap homes up to Rs 50 lakh. Also, MIG and HIG should be given its benefit. Permission of interest on home loan for income tax deduction, to encourage home buyers, the current interest deduction under Section 24 of IT Act 1961 on housing loan of Rs 2 lakh should be removed.
Ensure easy availability of funds
The government has provided a stress fund of Rs 25000 crore to help real estate. However, allowing more such stress funds will make it easier to complete the stalled projects across the country. At the same time, the time has come to reconsider the removal of the ban on subvention schemes to directly benefit home buyers.
Investors get concession
Real estate in India needs to attract more and more foreign investors to the sector. There is a need to create a platform where investors are encouraged, which can attract more and more foreign investors. For this the rule needs to be simplified. For this, real estate needs to be given the status of infrastructure sector. This can change the condition of the entire sector, as it will help in getting funds at lower rates and benefit every part of the sector. This will also increase investment in this sector.
Exemption on home loan, rent and income tax increased
For the end of sluggishness in the realty sector, it is necessary that the home buyers get a boost from the government. This can only happen when the government increases the concessions being given on the limit of home loan, rent and income tax exemption. This will increase the savings for common people and they will be able to fulfill their home dreams. Apart from this, the sector should be given industry status. This will make it easier for developers to raise funds at a lower interest rate. Most people buy houses by taking housing loans, and repay this loan with their hard earned money. Higher discounts on home loan principal and interest will increase people’s purchasing power, which will give a boost to the real estate sector and also benefit the economy.