Budget 2021: Realtors seek tax exemptions to boost housing demand
Confederation of Real Estate Developers Associations of India, which has around 20,000 members from across the country, also recommended tax incentives to boost investment in Real Estate Investment Trusts (REITs)
PTI | January 10, 2021 | Updated 22:41 IST
Realtors apex body CREDAI has suggested the government to increase tax exemptions in the upcoming Budget to boost housing demand and enhance limit of deduction under section 80C of income tax for principal repayment on home loans.
It also said that there should be a separate exemption for principal repayment on home loans.
The Budget for financial year 2021-22 will be presented on February 1.
"Real estate sector has been under stress for more than 2 years. Economic uncertainty enforced by COVID-19 pandemic has only made it worse for the sector. After battling for survival, the sector is slowly moving towards revival," the Confederation of Real Estate Developers Associations of India said.
Synopsis
Favourable market conditions and the need to own a home on grounds of safety is expected to fuel demand in the property markets in 2021.
The country’s biggest real estate market of Mumbai has continued its record-setting ride in December.
The ongoing Covid-19 pandemic has delivered a hard blow to property markets across India and challenged the industry that was already reeling under the pressure of sluggish sales, rising debt levels and delayed deliveries.
However, this period will also be known for providing the much-needed turnaround for housing in terms of sales growth and return of homebuyers to the market led by price correction, incentives offered by developers and tax benefits from the government.
While the housing inflation in Gujarat is the same as that of Delhi, only Lakshadweep, Sikkim, Goa, Chhattisgarh and Haryana had lower housing inflation.
AHMEDABAD: In contrast to other inflation trends, all of which seem to be moving upwards, housing inflation in urban Gujarat has dropped from 5.3% (2018-19) to 2.9% in 2019-20.
This year, it was the lowest since 2014-15.
Data by the Reserve Bank of India reveals that housing inflation had been increasing since 2015-16. It was 3.4% in 2015-16 and increased to 5.3% by 2018-19.
Sources said stabilization of prices of units and demand for housing has reined in the inflation.
While the housing inflation in Gujarat is the same as that of Delhi, only Lakshadweep, Sikkim, Goa, Chhattisgarh and Haryana had lower housing inflation.
AHMEDABAD: In contrast to other inflation trends, all of which seem to be moving upwards, housing inflation in urban Gujarat has dropped from 5.3% (2018-19) to 2.9% in 2019-20.
This year, it was the lowest since 2014-15.
Data by the Reserve Bank of India reveals that housing inflation had been increasing since 2015-16. It was 3.4% in 2015-16 and increased to 5.3% by 2018-19.
Sources said stabilization of prices of units and demand for housing has reined in the inflation.