Boosting Affordable Housing: Expectations from Union Budget 2024
Union Budget 2024 should provide impetus to the real estate and housing sector, with a focus on affordable housing and tax incentives.
Union Budget 2024Affordable HousingReal EstateTax IncentivesPradhan Mantri Awas YojanaReal Estate NewsJul 18, 2024
To revive the sector, Karnik suggests that the government should reintroduce tax holidays for affordable housing, but with a tweak. Instead of linking eligibility to the value of the flat, it should be based on the size of the flat. This would ensure that more people can avail of the benefits.
Another expectation is the revival of the credit-linked subsidy scheme, which expired in 2022. This scheme enabled people from the Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG) to purchase houses or undertake modifications.
Karnik also recommends increasing the interest tax deduction from Rs 2 lakh to at least Rs 5 lakh. Additionally, providing tax incentives for rental housing would help achieve the government's objective of 'Housing for All.'
In a separate development, the Union Cabinet, led by Prime Minister Narendra Modi, recently approved 3 crore additional rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). Since its inception in 2015-16, PMAY has been providing assistance to eligible rural and urban households for constructing houses with basic amenities.
The PMAY ensures that all houses built under the scheme are equipped with basic amenities like household toilets, LPG connections, electricity connections, and functional household tap connections through the integration of other central and state government schemes.
The real estate sector is hoping that Budget 2024 will provide the much-needed push to the industry, particularly in the affordable housing segment. With the right incentives and policies, the government can achieve its goal of providing housing for all citizens.
Frequently Asked Questions
What is the expected focus of the Union Budget 2024 for the real estate sector?
The expected focus is on providing impetus to the affordable housing segment, with tax incentives and policies to revive the industry.
What is the recommended criteria for eligibility for affordable housing?
According to experts, eligibility should be based on the size of the flat rather than its value.
What is the credit-linked subsidy scheme, and why is its revival being recommended?
The credit-linked subsidy scheme enables people from the EWS, LIG, and MIG to purchase houses or undertake modifications. Its revival is being recommended to support these sections of society.
What is the current interest tax deduction limit, and what is being recommended?
The current limit is Rs 2 lakh, and experts are recommending an increase to at least Rs 5 lakh.
What is the objective of the Pradhan Mantri Awas Yojana (PMAY)?
The objective of PMAY is to provide housing for all citizens, with basic amenities like household toilets, LPG connections, electricity connections, and functional household tap connections.
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