NAREDCO Advocates Higher Tax Exemption

19 Jul 2024 CW Team

Currently, the tax exemption limit on home loan interest is set at Rs 2 lakh per year. NAREDCO?s proposal to raise this limit to Rs 5 lakh is driven by the need to enhance housing affordability and support the real estate sector, which has faced challenges due to economic fluctuations and rising property costs. By increasing the exemption limit, NAREDCO seeks to make homeownership more accessible and financially manageable for a broader segment of the population.

The proposed increase in tax exemption could lead to substantial benefits for homebuyers, particularly those in the middle-income bracket who are heavily reliant on home loans. With the higher exemption limit, these buyers would be able to reduce their taxable income, thereby lowering their overall tax liability and making home financing more attractive.

For the real estate sector, the proposed change could act as a catalyst for growth by boosting demand for residential properties. A higher tax exemption would likely encourage more people to invest in homeownership, potentially leading to increased sales and development activity within the housing market. This, in turn, could generate additional economic activity and employment opportunities within the sector.

NAREDCO?s proposal also highlights the ongoing need for government support and policy measures to address the affordability crisis in the housing market. By aligning tax benefits with the current economic realities and housing costs, the government can play a crucial role in promoting homeownership and ensuring that more individuals have the opportunity to invest in their own homes.

In conclusion, NAREDCO?s call for raising the tax exemption limit on home loan interest to Rs 5 lakh represents a strategic move to enhance housing affordability and support the real estate sector. This proposed change could provide significant financial relief to homebuyers, stimulate market activity, and contribute to the overall growth and stability of the housing industry.

The National Real Estate Development Council (NAREDCO) has proposed a significant increase in the tax exemption limit on home loan interest, advocating for a rise to Rs 5 lakh from the current limit. This proposal aims to provide greater financial relief to homebuyers and stimulate growth in the housing sector. Currently, the tax exemption limit on home loan interest is set at Rs 2 lakh per year. NAREDCO?s proposal to raise this limit to Rs 5 lakh is driven by the need to enhance housing affordability and support the real estate sector, which has faced challenges due to economic fluctuations and rising property costs. By increasing the exemption limit, NAREDCO seeks to make homeownership more accessible and financially manageable for a broader segment of the population. The proposed increase in tax exemption could lead to substantial benefits for homebuyers, particularly those in the middle-income bracket who are heavily reliant on home loans. With the higher exemption limit, these buyers would be able to reduce their taxable income, thereby lowering their overall tax liability and making home financing more attractive. For the real estate sector, the proposed change could act as a catalyst for growth by boosting demand for residential properties. A higher tax exemption would likely encourage more people to invest in homeownership, potentially leading to increased sales and development activity within the housing market. This, in turn, could generate additional economic activity and employment opportunities within the sector. NAREDCO?s proposal also highlights the ongoing need for government support and policy measures to address the affordability crisis in the housing market. By aligning tax benefits with the current economic realities and housing costs, the government can play a crucial role in promoting homeownership and ensuring that more individuals have the opportunity to invest in their own homes. In conclusion, NAREDCO?s call for raising the tax exemption limit on home loan interest to Rs 5 lakh represents a strategic move to enhance housing affordability and support the real estate sector. This proposed change could provide significant financial relief to homebuyers, stimulate market activity, and contribute to the overall growth and stability of the housing industry.

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..