CREDAI demands to have a relook at affordable housing

Confederation of Real Estate Developers’ Associations of India (CREDAI) said that the interest deduction for homebuyers in tax rebates should be increased to provide momentum to the Center’s vision of affordable housing and housing for all. President, Harshvardhan Patodiasaid that lower restrictions on the housing sector will increase sales as well as lead to a quicker economic recovery. CREDAI is expecting the Union budget to provide infrastructure development and housing with the required impetus as finance minister Nirmala Sitharaman will be introducing several real estate sector amendments, relaxations, and extensions. The finance ministry is urged to extend the homebuyers’ interest deduction for a tax rebate for boosting the overall sales considering the obstacles created due to the third wave of Covid. An increase of Rs 3 lakh in the home loan borrowers’ tax deduction is demanded by the real estate builders, which is currently Rs 2 lakh. An extension of the timelines for seeking the credit-linked subsidy scheme (CLSS) benefits is also demanded. In the current situation, the center needs to take a relook at the term- affordable housing. CREDAI has requested an extension in the affordable projects’ eligibility till March 31, 2023. Furthermore, they also expect provisions having measures that include the deduction of loss under house property and addition to the housing loan principal repayment limit. They also expect the income tax burden to be reduced and provisions to be relaxed. CREDAI is confident that real estate sector development can add to faster economic recovery. Image Source