SWAMIH Fund 2.0 and Higher TDS on Rentals to Boost Real Estate Growth: Hiranandani
Mumbai (Maharashtra) [India], February 1 (ANI): The proposed hike in TDS (Tax Deducted at Source) on rentals up to Rs 6 lakh, as promised in the recent budget, is expected to catalyze growth in the real estate sector, according to Hiranandani Group. This
Real EstateTdsSwamih Fund 20Hiranandani GroupMaharashtraReal Estate MaharashtraFeb 01, 2025
In a recent development, the government has proposed a hike in the TDS (Tax Deducted at Source) on rentals up to Rs 6 lakh, which is expected to have a positive impact on the sector.
Additionally, the launch of SWAMIH Fund 2.0 is seen as a significant move to address the liquidity crisis and promote the completion of ongoing projects.
According to the Hiranandani Group, one of the leading real estate developers in India, these measures are a step in the right direction.
The hike in TDS on rentals is expected to bring more transparency and accountability into the rental market, which has been largely unregulated.
This, in turn, is likely to attract more investors and tenants, thereby boosting the overall demand in the real estate sector.
The SWAMIH Fund 2.0, which is a follow-up to the first SWAMIH Fund, is designed to provide financial support to stalled real estate projects.
The fund aims to revive projects that have been delayed due to financial constraints, thereby reducing the inventory overhang and creating more jobs in the construction sector.
This move is expected to provide a much-needed boost to the real estate market, especially in the wake of the economic slowdown caused by the pandemic.
The Hiranandani Group has been at the forefront of the real estate sector, known for its commitment to quality and innovation.
The group has a presence in several cities across India, including Mumbai, Thane, and Bengaluru.
With a rich legacy spanning over five decades, Hiranandani has completed numerous projects and is a trusted name in the industry.
According to Hiranandani, the proposed hike in TDS on rentals and the launch of SWAMIH Fund 2.0 are likely to have a multiplier effect on the economy.
These measures are expected to increase the flow of funds into the real estate sector, which will, in turn, lead to more construction activities and job creation.
The group also believes that these initiatives will help in reducing the number of unsold properties and improve the overall health of the sector.
Moreover, the hike in TDS on rentals is expected to bring more transparency and formalization into the rental market.
This is particularly important in a sector that has been plagued by issues such as informal agreements and lack of documentation.
By bringing more transactions into the formal economy, the government is likely to generate more revenue through taxes, which can be reinvested into infrastructure and social welfare programs.
The SWAMIH Fund 2.0 is another crucial initiative that is expected to address the liquidity crisis in the real estate sector.
The fund is designed to provide financial assistance to developers who are facing difficulties in completing their projects.
This will help in reducing the inventory overhang and ensuring that homebuyers get their properties on time.
The fund is also expected to attract more institutional investors into the sector, thereby increasing the overall investment in the real estate market.
In conclusion, the proposed hike in TDS on rentals and the launch of SWAMIH Fund 2.0 are significant steps that are likely to have a positive impact on the real estate sector.
These measures are expected to boost investment, reduce the inventory overhang, and create more jobs, thereby contributing to the overall growth of the economy.
The Hiranandani Group, with its experience and expertise, is well-poised to benefit from these initiatives and continue its leadership in the real estate market.
Frequently Asked Questions
What is TDS and how is it related to the real estate sector?
TDS stands for Tax Deducted at Source. It is a method of tax collection where a certain percentage of the payment made to an individual or entity is deducted at the source and remitted to the government. In the real estate sector, TDS on rentals up to Rs 6 lakh is expected to bring more transparency and formalization into the rental market, attracting more investors and tenants.
What is the SWAMIH Fund 2.0 and its purpose?
The SWAMIH Fund 2.0 is a fund designed to provide financial support to stalled real estate projects. It aims to address the liquidity crisis in the sector by reviving projects that have been delayed due to financial constraints, reducing the inventory overhang, and creating more jobs in the construction sector.
How will the hike in TDS on rentals benefit the real estate market?
The hike in TDS on rentals is expected to bring more transparency and formalization into the rental market. This will attract more investors and tenants, boost the overall demand in the real estate sector, and generate more revenue through taxes for the government.
What is the role of the Hiranandani Group in the real estate sector?
The Hiranandani Group is one of the leading real estate developers in India, known for its commitment to quality and innovation. The group has a presence in several cities across India and has completed numerous projects. It has a rich legacy spanning over five decades and is a trusted name in the industry.
How will the SWAMIH Fund 2.0 and the TDS hike collectively impact the real estate sector?
The SWAMIH Fund 2.0 and the TDS hike are expected to collectively boost investment, reduce the inventory overhang, and create more jobs in the real estate sector. These measures will increase the flow of funds, promote the completion of stalled projects, and improve the overall health of the sector.
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