CREDAI has developed recommendations in response to the government's intention to solicit input from various industry associations for the Union Budget 2023–24. Suggestions include additional tax exemptions on home loans, rental incomes and a relaxation of the rules governing investments in long-term capital gains.
There is an urgent need to raise the amount of interest paid on house loans from Rs 2 lakh to at least Rs 5 lakh due to rising retail inflation and ongoing repo rate hikes. This would guarantee middle-class households more disposable money and entice potential homebuyers to make a purchase, increasing demand.
According to CREDAI, the price cap of Rs 45 lakhs on units qualifying as affordable housing has to be reviewed because the prices of various construction raw materials, labour costs, and overall construction costs have changed significantly. This has had an effect on general housing prices, making people ineligible for Section 80-IBA tax breaks.
The Confederation of Real Estate Developers and Investors in India (CREDAI) has called on the government to exempt 100% of rental income up to Rs 20 lakh per year. This would encourage those with spare income to invest in rental houses, CREDAI said.
"Our recommendations are centred on continuing the sector's current growth," said CREDAI president Harsh Vardhan Patodia.
© 2023 Rera News. All rights reserved.