Boosting Real Estate: Government May Offer Tax Benefits and Industry Status in Budget 2024
The government is considering tax incentives for homebuyers and industry status for the real estate sector in the upcoming Budget 2024. This move is expected to boost the sector's growth and development.
Real EstateTax BenefitsIndustry StatusBudget 2024HomebuyersReal Estate NewsJul 10, 2024
The real estate sector is also hoping to be granted industry status in the upcoming Budget. This would allow state and central government agencies to recognize it as a separate and organized sector, providing customized programs and subsidies to address its specific needs. An industry status would bring several advantages, including legal and administrative perks such as capital and interest subsidies, expedited licensing through single-window systems, and reductions or exemptions in stamp duties, tariffs, and other charges.
Homebuyers will also be keenly watching for any increase in the deduction limit on home loans, including a deduction for home loan principal payment. The current deduction limit is ₹2 lakh, which is considered relatively low. An increase in the deduction limit would provide relief to homebuyers and encourage more people to invest in the sector.
In addition to these measures, the government has already introduced various incentives to support the sector's growth. The Haryana government, for instance, has recently changed its stilt-plus-four (S+4) building regulations, permitting the construction of stilt-plus-four buildings and offering a pathway for earlier violators to legalize such properties. This policy has been applied selectively in areas that meet specific density norms, ensuring that development is both sustainable and beneficial to the community.
The government's decision to consider these measures is a welcome move for the real estate sector, which has been struggling to recover from the impact of the COVID-19 pandemic. By providing tax benefits and industry status, the government can help boost the sector's growth and development, which would have a positive impact on the overall economy.
Information
HRERA (Haryana Real Estate Regulatory Authority) is a regulatory body established to ensure transparency and accountability in the real estate sector. Sanjeev Kumar Arora is a member of HRERA Gurugram.
The real estate sector is a significant contributor to India's economy, and the government's decision to provide tax benefits and industry status is expected to have a positive impact on the sector's growth and development.
Frequently Asked Questions
What is the current deduction limit on home loans?
The current deduction limit on home loans is ₹2 lakh.
What is the benefit of industry status for the real estate sector?
Industry status would bring several advantages, including legal and administrative perks such as capital and interest subsidies, expedited licensing through single-window systems, and reductions or exemptions in stamp duties, tariffs, and other charges.
What is the significance of the Haryana government's changes to the stilt-plus-four (S+4) building regulations?
The changes to the S+4 building regulations would permit the construction of stilt-plus-four buildings and offer a pathway for earlier violators to legalize such properties, ensuring sustainable and beneficial development to the community.
Why is the government considering tax benefits for homebuyers?
The government is considering tax benefits for homebuyers to provide relief and encourage more people to invest in the sector, which would have a positive impact on the overall economy.
What is the expected impact of the government's decision on the real estate sector?
The government's decision to provide tax benefits and industry status is expected to boost the sector's growth and development, which would have a positive impact on the overall economy.
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