Budget 2020: CII for higher tax benefits for homebuyers to boost demand in real estate sector

Industry chamber CII on Thursday urged the government to increase tax benefits for homebuyers to boost demand in the liquidity-hit real estate sector

Press Trust of India January 23, 2020 14:40:12 IST
Budget 2020: CII for higher tax benefits for homebuyers to boost demand in real estate sector
  • The maximum available deduction on interest payment of home loan taken for all the property/(ies) should be increased from Rs 2,00,000 to Rs 5,00,000, CII said

  • The government should also consider increasing the income criteria under PMAY scheme to Rs 18 and 25 lakh from the current Rs 12 and 18 lakh in the MIG I and ll categories, respectively, it said

  • CII said granting infrastructure status to integrated townships and overall housing sector, would help developers access priority funding at a lower cost

New Delhi: Industry chamber CII on Thursday urged the government to increase tax benefits for homebuyers to boost demand in the liquidity-hit real estate sector.

The chamber said that in order to meet a minimum GDP growth target of 6 to 7 percent, it is important to have a definitive plan for boosting the demand in the sector.

The sector needs more liquidity support and steps to boost demand, it said in a statement.

"CII has urged the government to increase the tax benefits to homebuyers and extend income limit under Pradhan Mantri Awas Yojana to boost demand in the sector which is battling stress and liquidity issues for the past year," it added.

Budget 2020 CII for higher tax benefits for homebuyers to boost demand in real estate sector

Representational image. Reuters.

It has also proposed a focused action plan to boost the sector as part of its pre-budget suggestions.

"To meet a minimum GDP growth target of 6 to 7 percent it is very important to have a definitive plan for boosting the demand in the real estate sector, which will have significant impact on job creation in both formal and informal sector, as well as a multiplier effect on overall demand," Chandrajit Banerjee, Director General of the Confederation of Indian Industry said.

The chamber called for additional tax benefits to homebuyers to boost the demand.

"The maximum available deduction on interest payment of home loan taken for all the property/(ies) should be increased from Rs 2,00,000 to Rs 5,00,000," it said.

The government should also consider increasing the income criteria under PMAY scheme to Rs 18 and 25 lakh from the current Rs 12 and 18 lakh in the MIG I and ll categories, respectively.

"This would allow a wider section of the society to benefit from the scheme pushing demand," it said.

Further, CII said granting infrastructure status to integrated townships and overall housing sector, would help developers access priority funding at a lower cost.

Follow full coverage of Union Budget 2020-21 here

Updated Date:

also read

B Right Real Estate IPO opens today; check details here
Business

B Right Real Estate IPO opens today; check details here

The IPO consists of a fresh issue of 2,899,200 shares. The shares of the real estate company will tentatively be allocated on 8 July. The B-Right Real Estate Limited stock is expected to be listed on the BSE SME on 13 July

Rupee relatively better placed than other global currencies against dollar, says Nirmala Sitharaman
Business

Rupee relatively better placed than other global currencies against dollar, says Nirmala Sitharaman

The rupee breached Rs 79 per dollar for the first time ever on Wednesday and has also hit a series of lifetime lows this month

Andhra Pradesh, Telangana and Gujarat among top achievers in 'ease of doing business' ranking of states, UTs
India

Andhra Pradesh, Telangana and Gujarat among top achievers in 'ease of doing business' ranking of states, UTs

Haryana, Karnataka, Punjab and Tamil Nadu are the other states categorised as top achievers based on the implementation of the business reform action plan 2020, as per a report released by Finance Minister Nirmala Sitharaman.