Tax Relief

The true property is in search of tax breaks, strengthening the funding.

The real estate industry is looking for tax breaks, a strengthening of the investment climate and the status of the sector in the upcoming budget. By doing so, the sector seeks to access legitimate and easy funding from banks and financial institutions.

According to Pankaj Bansal, director of M3M India, property buyers are looking forward to an increase in tax rebates. “Demand from these young millennials to invest in real estate will only increase with the government’s easing of taxes and rebates in the 2022 Union budget.”

Mohit Goel, MD, Omaxe Ltd said the sector wished the government to address their long-standing call for industry status and one-window clearance in the upcoming budget. “Bagging industry status will make it easier for the real estate sector to avail legitimate and easy finance from banks and financial institutions. The single-window release will help expedite the construction and delivery process as approval delays continue to be a barrier for developers,” he said. “Another expectation is to extend tax breaks to homebuyers by raising the home loan tax deduction limit from two lakh a year to five lakh a year. This would have an encouraging effect on homebuyers, especially first-time homebuyers across the country.”

Santosh Agarwal, CFO and executive director at Alpha Corp, expects the government to respond to calls for a single window clearance system. “The need for online single window approval is urgent as it would speed up the multi-approval process. An online single window clearance solution is also urgently needed to increase system transparency. We are optimistic that the government will shape its policies to further support property demand this year.”

Abhishek Pandey, Vice-President Customer Engagement and Distribution, Viridian RED believes that with the government’s focus on Atmanirbhar Bharat and making India a $5 trillion economy by 2025, doing business should be made easier . He said reforms should be implemented to expand the manufacturing sector. “To achieve this, India would need quality offices and a large part of the investment.”

The National Real Estate Development Council (NAREDCO), a real estate agency set up under the aegis of India’s Ministry of Housing and Urban Affairs, has presented its recommendations for the upcoming budget. She has called on the government to introduce policies to encourage home ownership, affordable housing and rental housing, and to support development companies.

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Rajan Bandelkar, National President of NAREDCO, stressed that the government has been providing support since the pandemic began. “While it has adopted a pro-growth stance, it is necessary to maintain vigil and continue the support offered to the sector. Amid the current lockdown and economic uncertainty, there is a need to create a sense of homeownership and create value when buying a home.”

NAREDCO highlighted the need to encourage people to buy their own homes. It believes one of the steps would be for the first home buyer to have home loan interest deducted from income or at least the interest subsidy should be increased from the current Rs 2 lakh to Rs 5 lakh.

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