As the fiscal landscape for the upcoming Union Budget 2024 takes shape, the real estate sector in India braces for a transformative symphony of economic resurgence. Amid shadows of anticipation and speculation, the industry’s players look to Finance Minister Nirmala Sitharaman for a budget that not only addresses challenges but also nurtures growth. Here are the ten key expectations echoing within the corridors of real estate power:
- Boost for Affordable Housing Revitalizing the affordable housing sector through the reinstatement of credit-linked subsidy schemes (CLSS) and additional incentives to stimulate demand.
- Modification in the Qualifying Standards for Affordable Housing Reassessing the qualifying cost of properties in the affordable housing segment to ensure broader accessibility, particularly in metropolitan cities.
- Increase in Deduction for Interest on Home Loan Urging a reconsideration of the existing deduction limit against home loan interest to provide significant relief to homebuyers facing higher Equated Monthly Installments (EMIs).
- Separate Section for Home Loan Principal Repayment Advocating for a dedicated section exclusively for the deduction against home loan principal repayment with increased limits, fostering effective tax benefits for homebuyers.
- Incentivizing Rental Housing Introducing incentives, such as 100% exemption for rental income up to Rs 3 lakh, to encourage investors to rent out properties and address the housing shortage in the low-income segment.
- Making Home Purchases More Tax-Efficient Extending the completion timeline for under-construction properties from three to five years to ease challenges faced by homebuyers in setting off capital gains.
- Grant of Industry Status Seeking industry status for the real estate sector to facilitate better financing, align with the national vision of housing for all, and catalyze growth and employment.
- Single Window Clearance System Advocating for a single window clearance system to expedite project development, enhance customer confidence, and reduce compliance and approval costs for developers.
- Stamp Duty Concessions Proposing concessions in stamp duty rates or allowing greater tax deductions to incentivize property transactions and streamline the registration process.
- Simplification of Taxation on REIT Introducing tax incentives under Section 80C for investors in real estate investment trusts (REITs) to make them an attractive tax-saving instrument and encourage prospective investors.
In the delicate dance between policy and practice, the expectations outlined above are seeds sown in fertile soil, awaiting the fiscal revelation that will shape the real estate landscape in the coming years. As the budgetary tapestry unfolds, the industry stands on the brink of transformation, anticipating a symphony that harmonizes the market and fortifies the pillars of economic resilience.
