Budget 2024: Real Estate Sector Seeks Boost with Single-Window Approval and Tax Benefits
The Indian real estate sector is hoping for reforms and incentives in the upcoming budget to address long-standing challenges and foster growth.
Budget 2024Real EstateIndustry StatusSingle Window ApprovalTax BenefitsGst RatesAffordable HousingHousing For AllReal Estate NewsJul 03, 2024
In this backdrop, industry stakeholders have been advocating for several measures to boost the sector. One of the key demands is the granting of 'industry status' to the housing sector, which could incentivize growth and attract significant investment. Another important expectation is the introduction of a single-window approval system for real estate construction, which would streamline processes, reduce delays, and boost efficiency across the sector.
NAREDCO Chairman Niranjan Hiranandani has emphasized the need to extend corporate tax benefits to all, withdraw surcharges, and comprehensively revise tax policies. He has also suggested increasing the limit of interest deduction paid on home loans from 2 lacs to 5 lacs, bringing long-term capital gains at 10 per cent 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.
The National President of NAREDCO, G Hari Babu, has prioritized affordable and sustainable housing initiatives. He has suggested allocating ₹50,000 crore to the second tranche of the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund in the upcoming union budget for FY 2024-2025. This should be accompanied by other budgetary support and relaxations, including allowing input tax credit under GST and incentives for rental housing to achieve the housing for all targets.
Arun Awasthy, President and Managing Director at Johnson Controls India, has expressed optimism that the upcoming Union Budget will drive focus towards strengthening the energy efficiency of India's building infrastructure. He has also suggested provisions to bolster the skilling and innovation initiatives related to green technology to bridge existing gaps.
Heeralal Doshi, Founder and Chairman at Kinjal, has stressed the necessity of expanding tax incentives for homebuyers and investors, reducing GST rates for real estate, and adjusting raw material pricing to enhance affordability and demand.
Industry stakeholders are also hoping for a moderate reduction in GST rates for the real estate sector, which would make homes more affordable and spark demand. Additionally, the sector is expecting a degree of personal tax relief through lower tax rates or by readjusting tax slabs, which is the need of the hour.
Overall, the real estate sector is looking forward to a budget that addresses its long-standing challenges and provides the necessary incentives to foster growth and development.
Frequently Asked Questions
What is the real estate sector expecting from Budget 2024?
The real estate sector is expecting reforms and incentives to address long-standing challenges and foster growth, including granting 'industry status' to the housing sector, extending corporate tax benefits, and introducing a single-window approval system for real estate construction.
What are the tax benefits that the real estate sector is expecting from Budget 2024?
The real estate sector is expecting tax benefits such as increasing the limit of interest deduction paid on home loans from 2 lacs to 5 lacs, bringing long-term capital gains at 10 per cent 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.
What is the significance of granting 'industry status' to the housing sector?
Granting 'industry status' to the housing sector could incentivize growth and attract significant investment, thereby boosting the sector's development.
What is the importance of affordable and sustainable housing initiatives?
Affordable and sustainable housing initiatives are crucial for achieving the 'Housing for All' target and addressing the housing needs of the urban and rural poor.
What is the impact of GST rates on the real estate sector?
High GST rates have made homes more expensive, thereby reducing demand. A moderate reduction in GST rates for the real estate sector would make homes more affordable and spark demand.
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