Real estate developers want to increase tax deduction limit on home loans in Union Budget 2022 & nbsp | & nbsp Image source: & nbspiStock Images
The property builders want to increase the tax deduction limit given to housing loan borrowers from the current Rs 2 lakh to Rs 5 lakh. The industry also wants to revise the definition of affordable housing, a low long-term capital gains tax for the real estate sector, and a new provision for a rental housing scheme in the 2022-23 Union budget.
In a letter to the Ministry of Finance, Credai, the real estate industry body, also urged a tax deduction on investments in real estate investment trusts (REITs). It also called for tax-neutral business consolidation through consolidation “to help homebuyers caught up in distressed housing projects,” according to an Economic Times report.
Harshvardhan Patodia, President, Credai said he expects the upcoming budget to provide a much-needed boost to infrastructure development by introducing several relaxations and extensions. Patodia said the industry wants the Treasury to raise the discount limit for homebuyers for tax cuts under Section 24b.
Amending Section 80c of the Income Tax Act 1961 in order to increase the time limit for the repayment of home loan principal or alternatively introduce a deduction section in the context of home loan principal repayment installments; The report added that these are some of the main budget forecasts for developers from the Ministry of Finance.
Deepak Goradia, Chairman, Maharashtra Chamber of Housing Industry, told ET that real estate should be placed under infrastructure mode which will bring a number of tax benefits to the sector, increase participation of foreign and domestic investment and lead to an overall increase in demand.
The developers want to make changes to the definition of “affordable housing” which takes into account apartment ticket size rather than space. Also, new provisions to encourage rental housing, single window permits, and a GST input tax credit for developers are among other major demands.