Thursday, January 14, 2021

Budget: One-time recast to tax sops, slew of measures in realty wish list

 With the Union Budget around the corner, stakeholders in the real estate sector have put forward wide-ranging demands to the Finance Minister Nirmala Sitharaman, ranging from a one-time restructuring of loans to tax incentives for home buyers.

The key job creating sector that accounts for about seven per cent of the country’s gross domestic product (GDP), has been marred by large inventory and subdued demand over the past few years and is in desperate need of a revival, National Real Estate Development Council (NAREDCO) said in a letter to the finance minister.

NAREDCO has sought removal of the Rs 2 lakh limit on income tax deduction on housing loan interest. Also, taxation rate on account of long-term capital gains from property sale should be brought down to 10 percent, it said.

“Interest on housing loans should be fully allowed under income tax deduction without any ceiling to incentivise home buyers and spurring overall demand. Also, loss from house property should be fully allowed to be adjusted against other heads of income”, said Rajeev Talwar, chairman of NAREDCO and chief executive officer of DLF.

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