CREDAI asks for several tax sops to increase housing demand
Real Estate

CREDAI asks for several tax sops to increase housing demand

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

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?