Boosting Affordable Housing: What the Real Estate Sector Expects from the Budget
As the government gears up to unveil its annual budget, the real estate sector hopes for measures to boost affordable housing, including incentives, tax benefits, and rationalization of GST.
Real EstateAffordable HousingBudgetGstPmayReal Estate MaharashtraJul 02, 2024
Increasing the limit of interest deduction on home loans from Rs 2 lakh to Rs 5 lakh, bringing long-term capital gains at 10% on par with equity shares, and reducing the period of holding house property to 12 months would be a welcome move. Enhanced tax benefits for homebuyers and developers, rationalization of GST on under-construction properties, and a single-window clearance system for real estate projects are also on the sector's wish list.
The sector hopes for increased allocations and incentives under the Pradhan Mantri Awas Yojana (PMAY) to boost affordable housing for economically weaker sections and low-income groups. Simplifying GST rates and reducing stamp duty rates are expected to stimulate housing demand. The sector also expects measures to enhance housing accessibility and affordability, including granting 'Industry' status to the real estate sector, releasing government-owned lands at reduced costs, and redefining affordable housing for metro cities.
Frequently Asked Questions
What is the government's 'Housing for All' mission?
The government's 'Housing for All' mission aims to provide affordable housing to all citizens by 2022.
What are the tax benefits expected by the real estate sector?
The sector expects increased tax benefits for homebuyers and developers, including increasing the limit of interest deduction on home loans from Rs 2 lakh to Rs 5 lakh.
What is the role of GST in the real estate sector?
The sector hopes for rationalization of GST on under-construction properties to stimulate housing demand.
What is the significance of PMAY in the real estate sector?
PMAY provides incentives and allocations to boost affordable housing for economically weaker sections and low-income groups.
How can the government make housing more affordable?
The government can make housing more affordable by releasing government-owned lands at reduced costs, granting 'Industry' status to the real estate sector, and redefining affordable housing for metro cities.
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