+
Shishir Baijal, CMD, Knight Frank India
Real Estate

Shishir Baijal, CMD, Knight Frank India

On housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing. A separate annual deduction of Rs 150,000 will provide the much-needed fillip to opt for house purchase. The Credit Linked Subsidy Scheme (CLSS) has ensured a remarkable increase in the activity level in the affordable housing sector. Given the Covid-19 pandemic disturbances and a likely two-year time frame for the economy to recover from the impact, the deadline for the CLSS scheme should be extended by two years, up to 31 March 2023.

Additionally, given the relatively higher house prices in major cities, the upfront amount of the CLSS subsidy should be increased to Rs 0.35 million from the current level of Rs 0.23-0.267 million depending on the income category, with corresponding enhancement in income criteria, making the subsidy amount more significant in comparison to the house value.

The stressed asset fund to revive stuck residential projects has been progressing well. Considering there is a well-developed mechanism to prevent misuse and to ensure timely completion of projects with proper supervision in this fund, the government should consider increasing the size of the fund.

With the increased financial support, the stressed asset fund can also be encouraged to lend to a wider bouquet of projects till the non-banking financial (NBFC) sector gets back on its feet.

To avoid cascading impact of taxes and consequently house prices, the government should use this budget session to refer recommendation on restoration of GST input tax credit to the upcoming GST council meet.

For REIT, the government should reduce the timelines of investment from three years to one year for long-term capital gains taxation; thereby ensuring larger retail investor participation and easing a long-term funding challenge for such projects.

On housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing. A separate annual deduction of Rs 150,000 will provide the much-needed fillip to opt for house purchase. The Credit Linked Subsidy Scheme (CLSS) has ensured a remarkable increase in the activity level in the affordable housing sector. Given the Covid-19 pandemic disturbances and a likely two-year time frame for the economy to recover from the impact, the deadline for the CLSS scheme should be extended by two years, up to 31 March 2023. Additionally, given the relatively higher house prices in major cities, the upfront amount of the CLSS subsidy should be increased to Rs 0.35 million from the current level of Rs 0.23-0.267 million depending on the income category, with corresponding enhancement in income criteria, making the subsidy amount more significant in comparison to the house value. The stressed asset fund to revive stuck residential projects has been progressing well. Considering there is a well-developed mechanism to prevent misuse and to ensure timely completion of projects with proper supervision in this fund, the government should consider increasing the size of the fund. With the increased financial support, the stressed asset fund can also be encouraged to lend to a wider bouquet of projects till the non-banking financial (NBFC) sector gets back on its feet. To avoid cascading impact of taxes and consequently house prices, the government should use this budget session to refer recommendation on restoration of GST input tax credit to the upcoming GST council meet. For REIT, the government should reduce the timelines of investment from three years to one year for long-term capital gains taxation; thereby ensuring larger retail investor participation and easing a long-term funding challenge for such projects.

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App