Budget 2024: Real Estate Sector's Wishlist for Growth and Development
From single-window approval for construction to tax benefits, the real estate sector has a range of expectations from the upcoming budget.
Real EstateBudget 2024Industry StatusCorporate Tax BenefitsGst RatesReal EstateJul 03, 2024
NAREDCO Chairman Niranjan Hiranandani emphasized the need to extend corporate tax benefits to all, withdraw surcharges, and comprehensively revise tax policies. He 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.
National President of NAREDCO, G Hari Babu, suggested prioritizing affordable and sustainable housing initiatives. He recommended 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.
Arun Awasthy, President and Managing Director at Johnson Controls India, emphasized the need for provisions to bolster the skilling and innovation initiatives related to green technology to bridge existing gaps. He also suggested granting 'industry status' to the housing sector, introducing a single-window approval system for real estate construction, and introducing tax incentives and infrastructure upgrades to improve urban living and boost growth in emerging areas.
Heeralal Doshi, Founder and Chairman at Kinjal, 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. He also recommended raising the deduction limit for interest payments on home loans from the existing ₹2 lakh a year to ₹5 lakh, reducing GST on under-construction properties, and effecting adjustments in raw material pricing.
The real estate sector is also expecting a moderate reduction in GST rates for the real estate sector to make homes more affordable and spark demand. The budget should offer 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 incentives for growth and development.
Frequently Asked Questions
What is the real estate sector's expectation from Budget 2024?
The real estate sector is expecting reforms and incentives to foster growth and address long-standing challenges, including granting 'industry status' to the housing sector, extension of corporate tax benefits, surcharge withdrawal, and more.
What is the benefit of granting 'industry status' to the housing sector?
Granting 'industry status' to the housing sector could incentivize growth and attract significant investment.
What is the recommendation for interest deduction paid on home loans?
The recommendation is to increase the limit of interest deduction paid on home loans from 2 lacs to 5 lacs.
What is the importance of affordable and sustainable housing initiatives?
Affordable and sustainable housing initiatives are key to achieving the 'Housing for All' target and addressing the issue of affordability in the real estate sector.
What is the expectation from the budget in terms of personal tax relief?
The budget should offer a degree of personal tax relief through lower tax rates or by readjusting tax slabs, which is the need of the hour.
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