Real Estate Sector Pushes for Greater Tax Benefits on Home Loans and Rental Housing
The real estate sector urges the government to focus more on rental housing and increase tax benefits on home loans, during a pre-Budget consultation with the finance minister.
Real EstateTax BenefitsHome LoansRental HousingPrebudget ConsultationReal EstateJan 06, 2025
This request was made during a pre-Budget consultation with the finance minister on Monday.
“Up until now, we have primarily focused on ownership housing, but it's crucial to give rental housing the attention it deserves as well,” stated Niranjan Hiranandani, Managing Director of Hiranandani Group and Chairman of the National Real Estate Development Council, after the meeting.
In the last Budget, Finance Minister Nirmala Sitharaman announced that rental housing with dormitory-type accommodation for industrial workers would be facilitated through public-private partnerships, with viability gap funding support and commitment from anchor industries.
Hiranandani emphasized that this initiative should be extended to a broader audience.
He noted that in the United States, which is one of the world's wealthiest countries, 50% of the population lives in rental housing.
The pre-Budget consultation was a comprehensive gathering, attended by representatives from the infrastructure, energy, and urban sectors, along with senior officials.
The meeting also discussed the possibility of granting infrastructure status to the housing sector and making more funds available to promote affordable housing.
Another key proposal was to increase the exemption limit on interest on housing loans from Rs 2 lakh to Rs 5 lakh.
This move is expected to provide significant relief to homebuyers and stimulate the real estate market.
The meeting also addressed the redevelopment of slums in Mumbai.
Notable attendees included B V N Rao, Business Chairman of GMR Group; S Paramasivan, Managing Director of Afcons Infrastructure; and Gurinder Pal Singh, Head of Indirect Taxes at Larsen and Toubro.
The energy sector was represented by Sumant Sinha, Chairman of ReNew Group, and Pawan Kumar Agarwal, CEO of Waree Energy.
The urban development group had seven representatives.
These proposals, if implemented, could have a substantial impact on the real estate sector, making housing more accessible and affordable for a larger segment of the population.
Frequently Asked Questions
What did the real estate sector request during the pre-Budget consultation?
The real estate sector requested the government to focus more on rental housing and provide higher tax benefits on home loans.
What was announced in the last Budget regarding rental housing?
Finance Minister Nirmala Sitharaman announced that rental housing with dormitory-type accommodation for industrial workers would be facilitated through public-private partnerships with viability gap funding support and commitment from anchor industries.
Who attended the pre-Budget consultation?
The consultation was attended by representatives from the infrastructure, energy, and urban sectors, along with senior officials. Notable attendees included Niranjan Hiranandani, B V N Rao, S Paramasivan, and Gurinder Pal Singh.
What was the proposal regarding the exemption limit on interest on housing loans?
The proposal was to increase the exemption limit on interest on housing loans from Rs 2 lakh to Rs 5 lakh.
What other issues were discussed in the meeting?
The meeting also discussed granting infrastructure status to the housing sector, making more funds available for affordable housing, and the redevelopment of slums in Mumbai.
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