Budget 2021 Expectations: Realty sector seeks sops in Union budget

By: |
January 24, 2021 4:24 PM

Union Budget 2021 Expectations for Realty Sector: The Budget for financial year 2021-22 will be presented on February 1. In recent months, the government had offered Rs 25,000 crore stress asset fund for the uncompleted housing projects, increasing the differential from 10 per cent to 20 per cent under Section 43(CA) of the IT Act till June 30, 2021 were announced apart from ongoing interest subvention scheme.

Realty sector Budget 2021 Expectations, Budget 2021 Expectations for Realty sectorOn the aspect of housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing, he said.

Union Budget 2021-22 Expectations for Realty Sector: The real estate sector wants stimulus in the form of sops in the upcoming Union Budget to boost housing demand, a top Credai Bengal official said. The demands include personal tax relief, tax rebate on housing, extension of interest subvention, GST waiver, infrastructure status for the realty and easing liquidity for the sector, the official said.

The Budget for financial year 2021-22 will be presented on February 1. In recent months, the government had offered Rs 25,000 crore stress asset fund for the uncompleted housing projects, increasing the differential from 10 per cent to 20 per cent under Section 43(CA) of the IT Act till June 30, 2021 were announced apart from ongoing interest subvention scheme.

“The year 2020 has been an unprecedented period in human history that disrupted the normal course of life. Since the outbreak of the pandemic in India earlier this year, the real estate sector reeling under a liquidity crunch, witnessed a flurry of challenges, Credai, West Bengal, president Sushil Mohta told PTI. “There is a need to bolster the real estate sector that contributes 8 per cent of the country’s economy as it is gearing for a big leap in the next 10 years,” he said.

Global real estate consultant Knight Frank India chairman and managing director Shishir Baijal in a pre-budget wish demanded A separate annual deduction of Rs 150,000 that will provide the much-needed fillip to opt for house purchase. On the aspect of housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing, he said.

“Hike the Rs 2 lakh tax rebate on housing loan interest rates to at least Rs 5 lakh to generate healthier housing demand, most notably in affordable and mid-segment housing. The last increase in the deduction limit under Section 80C (to Rs 1.5 lakh a year) was in 2014 and an upward revision is long overdue,” Mohta who is also the Merlin group chairman said.

He also demanded GST waiver for under-construction homes and extension of the interest subvention by another three years. Baijal said the government should use this budget session to refer to recommendations on restoration of GST input tax credit to the upcoming GST council meet.

Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Budget tilted towards supporting growth; FY22 fiscal deficit target of 6.8% realistic: Moody’s
2Uttar Pradesh Budget 2021: Thrust on healthcare and infra, FY22 deficit seen at 4.2%
3Bihar Budget 2021: State govt presents Rs 2.18 lakh crore budget, no new tax imposed