CREDAI, an association of real estate companies, has sought various tax reliefs to accelerate the demand for homes, including raising the limit on deduction of interest on home loans to Rs 5 lakh from the current Rs 2 lakh.
CREDAI, an organization of real estate companies, has demanded several types of tax relief to accelerate the demand for homes.
Budget 2022: CREDAI, an association of real estate companies, has sought various tax reliefs to accelerate the demand for homes, including raising the limit on deduction of interest on home loans to Rs 5 lakh from the current Rs 2 lakh. According to PTI, CREDAI (Confederation of Real Estate Developers Associations of India) in the budget recommendation sent to the Finance Ministry has also sought changes in the definition of infrastructure and affordable houses for the region.
CREDAI National President Harsh Vardhan Patodia expressed hope that the upcoming budget will give a much needed boost to the infrastructure development and housing sector through various amendments, relaxations and extensions.
Difficult times amid pandemic: Organization
Patodia said that they request the Finance Ministry to further deduct the interest for home buyers for tax exemption under section 24(b). He said that this will strengthen the perception of buying a house, especially at a time when the outbreak of the third wave of the epidemic has started and times are going very difficult.
Real estate experts say that in the coming budget, steps will be taken to emphasize on affordable and rental housing. According to the report of Moneycontrol, with this, the existing financial system will be strengthened to provide liquidity to the stuck real estate projects.
Earlier this month, the government extended the deadline for providing pucca houses to all families till 2024. The cabinet has decided that under its flagship government scheme Pradhan Mantri Awas Yojana-Gramin, the government will give additional funding of Rs 2.17 lakh crore to the Center and the state. With this, its target of making Rs 2.95 crore will be achieved. According to the report, a sector expert said that the government’s commitment towards affordable housing will continue as before.
For the first time in Budget 2021, home buyers were given the benefit of additional interest deduction on home loans in the affordable segment. According to experts, the government is expected to continue promoting affordable rental housing schemes by providing tax exemptions for notified rental housing products. He said that this will accelerate the pace of investment in this scheme. And it will help in achieving the total target of household for all the people of the government.