Union Budget 2021: Real estate sector seeks sops to boost housing demand
The demands include personal tax relief, tax rebate on housing, extension of interest subvention, GST waiver, infrastructure status for the realty and easing liquidity for the sector
Kolkata: The real estate sector wants stimulus in the form of sops in the upcoming Union Budget to boost housing demand, a top Credai Bengal official said.
The demands include personal tax relief, tax rebate on housing, extension of interest subvention, GST waiver, infrastructure status for the realty and easing liquidity for the sector, the official said.
The Budget for financial year 2021-22 will be presented on 1 February.
In recent months, the government had offered Rs 25,000 crore stress asset fund for the uncompleted housing projects, increasing the differential from 10 percent to 20 percent under Section 43(CA) of the IT Act till 30 June, 2021 were announced apart from ongoing interest subvention scheme.
"The year 2020 has been an unprecedented period in human history that disrupted the normal course of life. Since the outbreak of the pandemic in India earlier this year, the real estate sector reeling under a liquidity crunch, witnessed a flurry of challenges, Credai, West Bengal, president Sushil Mohta told PTI.
"There is a need to bolster the real estate sector that contributes 8 percent of the country's economy as it is gearing for a big leap in the next 10 years," he said.
Global real estate consultant Knight Frank India chairman and managing director Shishir Baijal in a pre-budget wish demanded A separate annual deduction of Rs 150,000 that will provide the much-needed fillip to opt for house purchase. On the aspect of housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing, he said.
"Hike the Rs 2 lakh tax rebate on housing loan interest rates to at least Rs 5 lakh to generate healthier housing demand, most notably in affordable and mid-segment housing. The last increase in the deduction limit under Section 80C (to Rs 1.5 lakh a year) was in 2014 and an upward revision is long overdue," Mohta who is also the Merlin group chairman said.
He also demanded GST waiver for under-construction homes and extension of the interest subvention by another three years.
Baijal said the government should use this budget session to refer to recommendations on restoration of GST input tax credit to the upcoming GST council meet.
As per data by the Centre, GST revenue collected in May 2022 was Rs 1,40,885 crore
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