Homebuyers can see a big relief in their budget.
This time in the budget, people taking home loans can see a big relief. There is news that the government may make interest up to Rs 5 lakh tax-free in the budget. For this, NAREDCO and people related to the real estate sector have suggested increasing the deduction limit for payment of interest on home loans from Rs 2 lakh to Rs 5 lakh in the upcoming budget. He said that this will boost demand for housing amid rising housing prices and interest rates. Real estate companies are also looking at some tax incentives to boost demand and supply of affordable housing.
Increase in tax exemption on mortgage loan interest
NAREDCO said in a statement that under Section 24 of the Income Tax Act, the limit for deduction of interest on loans for self-occupied residential properties is up to Rs 2 lakh. According to the statement, in view of the rising property prices and interest rates, it is necessary to increase this limit to at least Rs 5 lakh. National Real Estate Development Council (NARDECO) Chairman G. Hari Babu said that if these recommendations are implemented, they will not only provide the necessary relief to businesses in the area but will also increase demand in the real estate sector.
Fluctuations in supply and demand
Dhruv Aggarwal, CEO (Group), Housing.com and PropTiger.com, said that over the last three years, a fluctuating trend has been observed in the demand and supply of affordable housing in metros and mid-size cities. He said that, therefore, in the upcoming budget, the focus should be on bringing back both the demand and supply of houses priced between Rs 15 lakh and Rs 75 lakh per unit. Introducing an interest subsidy scheme can effectively incentivise prospective home buyers.
What do real estate experts say?
Rajat Goyal, Managing Director, MRG Group, said that real estate sector is the second largest employment generating sector in the country. In such a situation, to accelerate the growth of the sector, it is necessary to give industrial status to the real estate sector in the upcoming budget. He said that giving a single-window approval system will also give a boost to the sector…. Neeraj Sharma, Managing Director, Ascon Infra Realtors, also said that keeping in view the pending demand for industry status and single-window approval system will help businesses get loans at lower interest rates and avail tax incentives.
