Budget wish list: Realty

Realtors seek GST waiver for under-construction houses

Realtors seek GST waiver for under-construction houses

The real estate sector, which is one of the major employment generators, expects major reforms in the upcoming Budget to bolster demand.

Vijay C Roy

Tribune News Service

Chandigarh, January 21

The real estate sector, which is one of the major employment generators, expects major reforms in the upcoming Budget to bolster demand. Given the depth of pain in the sector, mainly because of slowdown due to the pandemic, this year the demand has gone beyond the industry status. To mitigate the negative impact, the developers are of the view that the Centre will have to go the extra mile to stimulate growth. Let’s have a look what the realtors expect in the Budget:

Hike rebate on home loan

The government should hike rebate on home loan under Section 24 of the Income Tax Act from Rs 2 lakh to at least Rs 5 lakh to generate demand, especially in the affordable and mid-segment housing.

GST waiver

“At present, the GST on under-construction properties is 5% for premium homes (above Rs 45 lakh) and 1% for affordable homes (below Rs 45 lakh). To generate the demand, the government should provide GST waiver for limited period or the price cap for affordable houses should be increased from Rs 45 lakh to Rs 60 lakh,” said LC Mittal, director, Motia Group.

Ease liquidity

“The liquidity crunch had a cascading effect across sectors, including the real estate. “Developers need a rational capital flow to maintain the supply pipeline, especially for the ready-to-move-in houses. Increased supply also helps to keep property prices range-bound,” said Anuj Puri, chairman, ANAROCK Property Consultants.

More stress funds

“Establishing the SWAMIH Investment fund of Rs 25,000 crore to help the realty sector is appreciated. However, allowing more such stress funds will help facilitate the last mile funding for stressed and stalled projects,” said Dr Niranjan Hiranandani, national president, NAREDCO.

Fractional ownership

“The government should look at encouraging concept of fractional ownership as it can bring turnaround in India’s investment scenario. The government should allow tax exemptions for investment through fractional ownership. There should also be conducive policy reforms and infrastructural development which can boost commercial real estate,” said Shiv Parekh, founder, hBits.

Top Stories

Population-based Covid vaccination from Monday, registrations open from 9 am

Population-based Covid vaccination from Monday, registrations open from 9 am

Appointments can be booked between 9 am and 3 pm

India records 16,752 fresh COVID cases, biggest single-day jump in 30 days

India records 16,752 fresh COVID cases, biggest single-day jump in 30 days

Death toll mounts to 1,57,051 with 113 fresh fatalities

Mann ki Baat: Aatmanirbhar Bharat is national spirit, says PM Modi

Mann ki Baat: Aatmanirbhar Bharat is national spirit, says PM Modi

Calls for 100-day campaign to clean up water bodies, harvest...

Azad praises PM Modi for being ‘frank’ about his past as ‘tea-seller’

Azad praises PM Modi for being ‘frank’ about his past as ‘tea-seller’

Remarks come a day after Azad and other ‘G-23’ dissident lea...

Punjab’s budget session from Monday, fireworks likely

Punjab’s budget session from Monday, fireworks likely

Opposition to corner govt over ‘failure’ to honour its poll ...

Cities

View All