Real estate developers have called for focussed support in the Budget for the first-time home buyer and measures to augment supply of housing for affordable and low income groups. Industry representatives have also called for a simplification of systems and tax reliefs as a step to bringing down costs and catalyse developments.
The Confederation of Real Estate Developers Association of India and the Royal Institution of Chartered Surveyors – India, have pressed for concessions to the first-time home buyer and measures to encourage rental housing.
The RICS India has suggested tax cuts for first-time home buyers and residential rentals to improve supply and affordability. As is the international practice, first-time home buyers should be given tax credits up to 10 per cent of the value of the residential unit, with the credit reclaimed over three assessment years.
RICS also presses for revision of tax exemption on cost of initial home loan and interest in line with the increase in property prices to ensure affordability – RICS suggests an increase of Rs 1.5 lakh to Rs 2 lakh on interest payments.
Rental housing constraints could be addressed by supporting the sector with a cut in tax rates to about 20 per cent from 30 per cent; taxing just 50 per cent of the income against the prevailing 70 per cent; and hiking income tax exemption from rental income under Section 24 to 50 per cent.
