Bengal Real Estate Stakeholders Push for Affordable Housing and Tax Benefits in Union Budget 2025
Kolkata: As the Union Budget 2025 approaches, real estate stakeholders in Bengal are advocating for reforms to boost affordable housing and provide enhanced tax benefits for home buyers, among other key demands.
Real EstateAffordable HousingUnion Budget 2025Tax BenefitsInfrastructure DevelopmentReal Estate NewsJan 20, 2025
Sushil Mohta, president of CREDAI West Bengal and chairman of Merlin Group, emphasized the importance of the real estate sector as the second-largest employment generator in India.
He stated, “To support India’s growth story, sustainable infrastructure development is essential.
The upcoming Union Budget must prioritize infrastructure expansion, which will, in turn, spur growth across multiple sectors.”
According to real estate builders in the state, one of the primary demands is the revision of the definition of affordable housing.
They propose increasing the price cap for affordable housing units from Rs 45 lakh to Rs 90 lakh, with an annual 5 percent increment.
Additionally, they are calling for the introduction of a credit guarantee scheme for housing loans up to Rs 70 lakh, covering 80 percent to 90 percent of the property value.
This scheme would also include home improvement loans of up to Rs 30 lakh.
The stakeholders also demand an increase in the interest deduction limit for the first self-occupied property from Rs 200,000 to Rs 500,000.
They propose an exemption of up to Rs 20 lakh of annual rental income from income tax for individuals.
A simplified GST structure is another key demand, with a call to merge the rates into a single 1 percent GST for all housing units.
The real estate sector is also pushing for the reintroduction of the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) for the youth below 40 years, providing subsidies of 3 percent to 4 percent on housing loans.
Reducing and standardizing stamp duty rates across states, along with offering rebates to first-time homebuyers, is another common demand to make housing more accessible.
Further, the stakeholders are advocating for a reduction in the long-term capital gains tax to 10 percent and a lowering of the holding period for eligibility to 12 months.
Mohta concluded, “For India to thrive as a global economy, growth in infrastructure is essential.
A balanced and reformative Union Budget is the need of the hour to catalyze this transformation.”
CREDAI West Bengal, a leading organization in the real estate sector, represents a wide range of developers and builders.
The organization works towards promoting sustainable and inclusive growth in the real estate market, ensuring that policies are conducive to the sector's development and the well-being of homebuyers.
Frequently Asked Questions
What are the primary demands of real estate stakeholders in Bengal for the Union Budget 2025?
The primary demands include revising the definition of affordable housing, introducing a credit guarantee scheme for housing loans, increasing the interest deduction limit for the first self-occupied property, and simplifying the GST structure.
Why is the revision of the affordable housing definition being proposed?
The revision aims to increase the price cap for affordable housing units from Rs 45 lakh to Rs 90 lakh and include an annual 5 percent increment, making it more accessible to a broader segment of homebuyers.
What is the proposed credit guarantee scheme for housing loans?
The proposed credit guarantee scheme would cover 80 percent to 90 percent of the property value for housing loans up to Rs 70 lakh, providing additional security and support for homebuyers.
How does the proposed reduction in stamp duty rates and rebates for first-time homebuyers help the real estate sector?
Reducing and standardizing stamp duty rates, along with offering rebates to first-time homebuyers, makes housing more affordable and accessible, thereby boosting demand in the real estate market.
What role does CREDAI West Bengal play in the real estate sector?
CREDAI West Bengal is a leading organization representing developers and builders. It advocates for policies that promote sustainable and inclusive growth in the real estate market, ensuring the well-being of homebuyers and the sector's development.
Related News Articles
Current Gold Prices in Major Indian Cities: Latest Rates and Updates
Stay updated with the latest gold prices for 10 grams of 22-carat gold in major Indian cities across India.
Equinox India Developments Limited: The New Face of Indiabulls Real Estate
Listed real estate developer Indiabulls Real Estate Limited has undergone a transformation, changing its name to Equinox India Developments Limited with effect from June 20, 2024.
Real Estate Entrepreneur Kamlesh Kumar Jailed in Ranchi Amid Money Laundering Probe
The Enforcement Directorate (ED) has arrested Real Estate businessman Kamlesh Kumar in Ranchi under the Prevention of Money Laundering Act (PMLA).
Navneet Rana to Skip Maharashtra Assembly Polls, Eyes Rajya Sabha Seat
Navneet Rana, a prominent political figure in Maharashtra, has announced that he will not contest in the upcoming Maharashtra Assembly elections. Instead, he is setting his sights on a membership in the Rajya Sabha. This decision comes after a series of s
Micromitti to Launch SM-REITs: A New Era for Real Estate Investment in Central India
Micromitti, a leading PropTech firm in Central India, is set to introduce Real Estate Investment Trusts (REITs), AIF Category 2 Real Estate Funds, and Private Equity (PE) investments, providing high-return opportunities for individual investors.
Bhopal Sees Property Rates Soar by Up to 200% in 243 Locations
Property rates in Bhopal have increased by up to 200% in 243 locations, including prime areas like Arera Colony, 10 Number Market, and MP Nagar, sparking opposition from builders and developers.