CREDAI asks for several tax sops to increase housing demand

15 Jan 2022 CW Team

CREDAI has asked for different tax sops to stimulate housing demand, including an upsurge in the deduction limit for interest on house loans to Rs 5 lakh from the present Rs 2 lakh.

In its Budget recommendations to the Finance Ministry, CREDAI, which has approximately 13,000 developer members, has additionally asked for infrastructure status for the sector and change in the meaning of affordable housing. CREDAI's National President Harshvardhan Patodia anticipates the forthcoming budget to give the much-needed impetus to infrastructure development and housing by bringing various modifications, relaxations and extensions.

Patodia told the media that they request the Finance Ministry to increase the interest deduction for homebuyers for tax rebates under section 24(B) to facilitate the overall home buying sentiment, especially in these challenging times with the start of the third wave. CREDAI additionally requested an amendment to Section 80C under the Income Tax Act to raise the limit for repayment of housing loan principal, decrease the income tax burden on rental housing and long-term capital gains on capital assets.

On interest decrease on house loans, CREDAI told the media that in the case of individuals, the interest in respect of first self-occupied property must be permitted without any limit. Alternatively, the limit for deduction of interest should surge to Rs 5 lakh in respect of the self-occupied property. CREDAI said that the limit of Rs 45 lakh on the value of property to authorise as affordable housing provides housing in metros ineligible for the advantages under Section 80 IBA, which encourages the development of such low-cost houses. The limit on the value of the unit is increased to Rs 75 lakh (for non-metro cities) and Rs 1.50 crore (for metro cities).

Since builders are entering into joint development agreements (JDA) with landowners to build new projects, CREDAI pointed out that the payment of tax at the time of JDA, whereas the actual consideration would flow in a future date, serves as a disincentive towards housing and real estate expansion. The amendment will assist in avoiding a tremendous amount of litigation.

Image Source

CREDAI has asked for different tax sops to stimulate housing demand, including an upsurge in the deduction limit for interest on house loans to Rs 5 lakh from the present Rs 2 lakh. In its Budget recommendations to the Finance Ministry, CREDAI, which has approximately 13,000 developer members, has additionally asked for infrastructure status for the sector and change in the meaning of affordable housing. CREDAI's National President Harshvardhan Patodia anticipates the forthcoming budget to give the much-needed impetus to infrastructure development and housing by bringing various modifications, relaxations and extensions. Patodia told the media that they request the Finance Ministry to increase the interest deduction for homebuyers for tax rebates under section 24(B) to facilitate the overall home buying sentiment, especially in these challenging times with the start of the third wave. CREDAI additionally requested an amendment to Section 80C under the Income Tax Act to raise the limit for repayment of housing loan principal, decrease the income tax burden on rental housing and long-term capital gains on capital assets. On interest decrease on house loans, CREDAI told the media that in the case of individuals, the interest in respect of first self-occupied property must be permitted without any limit. Alternatively, the limit for deduction of interest should surge to Rs 5 lakh in respect of the self-occupied property. CREDAI said that the limit of Rs 45 lakh on the value of property to authorise as affordable housing provides housing in metros ineligible for the advantages under Section 80 IBA, which encourages the development of such low-cost houses. The limit on the value of the unit is increased to Rs 75 lakh (for non-metro cities) and Rs 1.50 crore (for metro cities). Since builders are entering into joint development agreements (JDA) with landowners to build new projects, CREDAI pointed out that the payment of tax at the time of JDA, whereas the actual consideration would flow in a future date, serves as a disincentive towards housing and real estate expansion. The amendment will assist in avoiding a tremendous amount of litigation. Image Source

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..