Tirupati: Further tax exemption on housing loan interest sought
Ahead of the presentation of Union Budget 2020-21 in the Parliament on Saturday, expectations of the middle class are rising high on the probable deduction of income tax rates, changes in its slabs and more sops for the real estate sector.
Tirupati: Ahead of the presentation of Union Budget 2020-21 in the Parliament on Saturday, expectations of the middle class are rising high on the probable deduction of income tax rates, changes in its slabs and more sops for the real estate sector. As the changes in income tax rates will also influence the real estate sector, the real estate industry has been expecting that any favourable decisions in this area will be of great use and recover the sector from its recent downturn.
Both builders and buyers are seeking more ease of doing business to push affordable housing. Though the home loans are being available at much affordable rates now, the middle class is interested to know whether they get any further relief to realise their dreams of buying houses. The exemption limit has been Rs.2 lakhs currently which they want to go up by at least to Rs.3 lakhs which will benefit number of home loan buyers.
Also, by amending section 80C of the Income Tax Act, a separate annual deduction of Rs.1.50 lakhs for principal repayment will also be helpful to those who seek housing loans and it will increase the number of buyers.
A builder said that if 100 percent interest on home loan be deducted from taxable amount, many buyers may come forward with their buying needs.
The Advisor of CREDAI V Srinivas told The Hans India that if the Income Tax exemption limit goes up to around Rs.5 lakhs, it will make positive impact on the real estate sector directly and it can flourish well. Already, the government has brought down the GST rates to 1 per cent for below 1200 sq ft houses and 5 per cent for more than 1200 sq ft.
However, the sand policy in the State has become an adverse factor for the sector. Also, the online approval system in the Municipal Corporation was not being implemented properly and the officials have been insisting for all hard copies. These two issues need to be addressed immediately.
The builders have been expecting continuous flow of funds to complete the projects on time and a single window clearance system will accelerate the construction of various projects.