Indian Housing Market Seeks Tax Relief and Sops in Budget 2024
The Indian real estate sector is looking forward to the 2024 budget, hoping for tax concessions and impactful measures to revive the affordable housing sector.
Indian Housing MarketReal Estate SectorBudget 2024Tax ConcessionsAffordable HousingReal Estate NewsJul 19, 2024
The re-introduction of 100% tax holiday for Affordable Housing Developers could help in a big way. Developers also feel that instead of a pricing cap, a floor size ceiling would help in boosting the affordable segment and increase supply. Industry experts say that granting infrastructure status to the real estate sector would enable developers to access low-cost funds and improve overall project viability.
The sector is also hoping for the government to increase tax deductions for housing loans, which it believes will boost sentiment. Measures like higher deduction for housing loan principal under Section 80C, increasing the limit of interest paid on self-owned properties, and extension of tax benefits under 80EEA could be big drivers.
Additionally, the sector is seeking measures to address the liquidity issue, announcing measures for easier access to financing, and expanding the SWAMIH stress fund. Lowering GST rates and reintroducing Input Credits could also help increase demand and reduce the tax burden for developers.
With signs of controlled inflation and a good monsoon providing better headroom for growth, the sector is hopeful that measures like allowing 100% FDI in Completed Residential Projects and granting full 'Industry' status to the real estate sector could fuel investments and holistic sector development.
Frequently Asked Questions
What is the current share of affordable housing in home sales in India?
Approximately 20% in Q1 2024.
What is the long-standing demand of the Indian real estate sector?
Industry status for the entire housing sector.
How can the government boost the affordable housing sector?
By reintroducing the 100% tax holiday for Affordable Housing Developers and changing the definition of Affordable Housing.
What is the benefit of granting infrastructure status to the real estate sector?
It will enable developers to access low-cost funds and improve overall project viability.
What are the expected measures to boost the housing sector in Budget 2024?
Tax deductions for housing loans, increasing the limit of interest paid on self-owned properties, and extension of tax benefits under 80EEA.
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