Budget 2022: Real Estate Sector Pins Hopes on Incentives for Affordable Housing
As the Government of India gears up to unveil its annual budget, the real estate sector is keenly anticipating measures to boost affordable housing.
Real EstateAffordable HousingBudget 2022IncentivesTax BenefitsReal EstateJul 02, 2024
Industry experts expect a comprehensive overhaul of tax policies to foster competitiveness and efficiency across corporate and individual tax frameworks. For homebuyers, increasing the limit of interest deduction paid 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 from the existing 24/36 months to qualify as a long-term capital asset would be a welcome move.
The stakeholders are also hopeful for enhanced tax benefits for both homebuyers and developers, which could stimulate demand and make housing more accessible to the lower and middle-income segments. Moreover, there is a strong call for the rationalization of the Goods and Services Tax (GST) on under-construction properties. A single-window clearance system for real estate projects is another long-standing demand.
The sector also expects 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 for under-construction properties and reducing stamp duty rates are expected to stimulate housing demand.
Information
NAREDCO (National Real Estate Development Council) is a leading advocacy group for the real estate sector in India. CREDAI-MCHI (Confederation of Real Estate Developers' Associations of India - Maharashtra Chamber of Housing Industry) is a premier real estate association in Maharashtra.
The Nahar Group is a prominent real estate developer in India, known for its luxurious residential and commercial projects. Shapoorji Pallonji Real Estate (SPRE) is a leading real estate developer in India, with a focus on affordable housing. Ashar Group is a reputed real estate developer in India, with a focus on affordable and luxurious housing projects.
Frequently Asked Questions
What is the main expectation of the real estate sector from the Union Budget 2022?
The sector expects incentives to boost affordable housing, including increased allocations and incentives under the Pradhan Mantri Awas Yojana (PMAY) and rationalization of GST on under-construction properties.
What tax benefits are being sought by the real estate sector?
The sector is seeking increased interest deduction on home loans from Rs 2 lakh to Rs 5 lakh, long-term capital gains at 10% on par with equity shares, and reducing the period of holding house property to 12 months.
Why is a single-window clearance system for real estate projects being demanded?
A single-window clearance system would simplify the approval process for real estate projects, reducing delays and increasing efficiency.
What is the significance of granting 'Industry' status to the real estate sector?
Granting 'Industry' status would facilitate easier and more cost-effective financing for developers, making housing more affordable for buyers.
Why is there a need to redefine affordable housing in metro cities like Mumbai?
Redefining affordable housing in metro cities like Mumbai would address the validated demand for 11.2 million houses, and ensure safer, better, and more affordable housing for citizens.
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