the limit of home loan interest deduction for tax rebate, from the current ceiling of ₹200,000 to ₹500,000. The CREDAI also called for the review of the definition of affordable housing and the lowering of long-term capital gains tax for real estate in the 2022-23 Union Budget.
“We expect the upcoming budget to provide the much-needed impetus to infrastructural development, and housing by introducing various amendments, relaxations & extensions which will be helpful for realizing the Prime Minister’s dream of Housing for All and faster economic recovery,” Harshvardhan Patodia, the President of CREDAI, said. “We urge the Finance Ministry to increase the interest deduction for homebuyers for tax rebate under section 24(B) to boost the overall home buying sentiment especially in these difficult times with the onset of the third wave.”
The apex body further recommended an exemption in tax for investments in Real Estate Investment Trusts (REITs) starting from ₹50,000, while it also suggested the amendment of section 80C of the 1961 Income Tax Act, to expand the limit for repayment of housing loan principal or to introduce another section for deduction in relation to repayment of housing loan principal instead.
“We are hopeful that the upcoming budget will bring realty under the infrastructure status which in turn will unlock multiple tax benefits to boost foreign and local investment and the overall demand in the sector,” Deepak Goradia, President of CREDAI MCHI, said. “Amendments in the definition of affordable housing in terms of counting the ticket size of the apartment instead of area, new provisions for encouraging rental housing, single-window clearances, input tax GST credit for developers are some key reforms that need to be considered for expediting economic recovery,” he added.
