Budget 2024 Expectations: Real Estate Sector Seeks Reform and Boost
The real estate sector is hoping for rationalization of GST rates, further push towards affordable housing, and granting of industry status in the upcoming budget.
Real EstateBudget 2024Gst RatesAffordable HousingIndustry StatusReal EstateJul 18, 2024
Amit Jain, Chairman and Managing Director, Arkade Developers, emphasized the need for including the real estate industry in the GST under a one-nation, one-tax framework. He also suggested increasing the deduction for interest on home loans from Rs 2 lakhs to Rs 5 Lakhs to combat rising inflationary pressures.\n\nThe Indian housing sector has remained upbeat in 2024, with housing sales and new launches creating new peaks in the top seven cities. Anuj Puri, Chairman – ANAROCK Group, pointed out that many interest stimulants previously extended to buyers and developers of affordable housing have expired in the last two years and need to be revived. He suggested tax breaks for developers and buyers to improve affordability
Puri also emphasized the need to rationalize the GST rates for under-construction properties, which currently stand at 12 per cent without input tax credit. Arshdeep Sethi, President- RMZ Real estate, RMZ Corporation, suggested fast-tracking clearances and extending corporate tax benefits to attract investments in the sector.\n\nRishi Anand, MD and CEO of Aadhar Housing Finance Ltd, suggested redefining Priority Sector Limits (PSL) in the sector, merging both PMAY Urban and PMAY Rural schemes for CLSS subsidy, and redefining the income criteria of EWS and LIG to make affordable housing more accessible.\n\nThe real estate sector is hopeful that the government will consider their demands and provide a much-needed boost to the sector.
Frequently Asked Questions
What is the current GST rate for under-construction properties?
The current GST rate for under-construction properties is 12 per cent without input tax credit.
What is the current deduction for interest on home loans?
The current deduction for interest on home loans is Rs 2 lakhs.
What is the demand of the real estate sector from the government?
The real estate sector is demanding rationalization of GST rates, further push towards affordable housing, and granting of industry status.
What is the significance of affordable housing in the Indian economy?
Affordable housing is crucial to the Indian economy, accounting for around 8 per cent of total GDP.
What is the current status of the Indian housing sector?
The Indian housing sector has remained upbeat in 2024, with housing sales and new launches creating new peaks in the top seven cities.
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