NAREDCO Advocates Higher Tax Exemption
ECONOMY & POLICY

NAREDCO Advocates Higher Tax Exemption

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.

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.

Next Story
Real Estate

Indian Real Estate Sector Sees Highest Capital Inflow in Seven Years

Equirus Capital, a leading full-service investment banking firm, has reported that India’s real estate sector has witnessed its highest capital inflow in seven years, with funds raised reaching ₹23,080 crore across 12 deals.According to Equirus Capital’s analysis, the cumulative capital raised by the sector since FY18 stands at ₹72,331 crore. Of this, Real Estate Investment Trusts (REITs) accounted for the largest share at ₹31,241 crore, followed by large-cap real estate companies at ₹20,437 crore, mid-cap players at ₹12,496 crore, and small-cap firms contributing ₹8,156 crore...

Next Story
Real Estate

India’s Flex Office Market Set for Record Growth

myHQ by ANAROCK, India’s largest workspace discovery and flexible office solutions platform, has released its Flex Office Market in India 2025 Report, revealing that India is set to become the Asia-Pacific region’s largest flexible office market. The report highlights how flexible workspaces have become a mainstream component of India’s commercial real estate, capturing a growing share of national leasing activity.“Flexible workspaces have evolved from a cost-optimisation tool to a strategic necessity,” said Utkarsh Kawatra, CEO and Co-Founder, myHQ by ANAROCK. “Average corporate d..

Next Story
Real Estate

India Defies Regional Slowdown; Office Leasing on Track for Record High in 2025

India’s office market continues to outperform the broader Asia-Pacific region, emerging as a key growth driver amid regional headwinds, according to Knight Frank’s Asia-Pacific Office Highlights Q3 2025 report. With 8.8 million sq. ft. transacted in the third quarter alone, leasing momentum remains robust. Full-year volumes across Bengaluru, NCR, and Mumbai are projected to reach 50 million sq. ft., surpassing the previous record of 41 million sq. ft. set in 2024.The surge has been fuelled by sustained leasing from Global Capability Centres (GCCs) and renewed activity from third-party IT s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?