New Delhi: The ongoing Covid-19 pandemic has affected global economies and has not spared the Indian real estate sector from the depths of despair. Therefore, the real estate sector's expectations for the upcoming 2021 Union budget are high.
NAREDCO, an industry body, is seeking an estimated Rs. 1.25,000 crore through the various HFCs / NBFCs they say is willing to set up pressure funds like this for the struggling real estate sector. In their opinion, this would allow for faster assessments and penalties.
“While the real estate industry estimates the initiative to create a SWAMIH fund at Rs. 25,000 crore to aid the real estate sector, allowing more stress funds of this kind will help facilitate last-mile financing for stalled and stalled projects,” said Niranjan Hiranandani, National President NAREDCO.
Improving the loan-to-value ratio (LTV) by up to 90 percent over affordable mortgage loans of Rs 30 lakh or less, the same facility should be extended to MIG and HIG, another lawsuit that has been filed. Industry.
“Allow interest on home loans to deduct income taxes without any ceiling, and to deduct the current interest under Article 24 of the Information Technology Act of 1961 regarding home loans of Rs 2. 2 Lakhs should be abolished to incentivize home buyers.
Raise long-term capital gains to 10% (at par with Clause 112 on Equity Shares) "Reducing the tenure of homeownership to 12 months from the current 24/36 months to qualify as a long-term capital asset is one hour," said Rajiv Talwar, president of NAREDCO.
"In addition, the loss of homeownership must be fully adjustable against other income. In the event that an unadjusted loss occurs, it should be allowed to carry over to later years," said Parveen Jin, NARIDCO Vice President.
For rental housing, NAREDCO seeks to improve HRA's tax credit; High depreciation for rental projects, as in commercial buildings, and allowing lost rental income to "keep up" will make a difference.
To encourage rental housing, “A deduction of 30% of annual rental income (for maintenance purposes) should be increased to 50%. This will not only improve the return on investment but will also encourage citizens to invest in residential real estate to offer rent”. Hiranandani said.
Likewise, affordable housing will benefit from increasing the completion period to six years; With concessional loan rates allowed for affordable housing projects. Talwar added that extending the Credit Linked Subsidy System (CLSS) to all sectors will support homebuyers.
Realtors want to reconsider the ban on grant schemes in favor of homebuyers directly. “The Reserve Bank of India and the National Housing Bank (NHB) should review the ban on subsidy schemes. The ban does not favor homebuyers, as a large proportion of them do not have the ability to pay monthly payments for their home loans and home rentals,” said Jain.
One-time loan restructuring, external commercial lending (ECB) for real estate, and SEZ reforms, including notification date extension for IT / ITeS economic zones and MAT withdrawal, are other lawsuits filed by NOAREDCO which believes this could be very beneficial To ensure green shoots in real estate.
Also Read: DDA’s New Housing Scheme