According to real estate industry analysts, there should be some tax breaks for first-time homebuyers and a reintroduction of the GST with an input tax credit for properties that are still under construction to increase demand from purchasers.
A reduction in house loan rates is one of the real estate sector’s top objectives from the incoming budget of 2023. Expectations are high because this is the last budget of the government of Prime Minister Narendra Modi before the 2024 general elections.
Samyak Doshi, Director at Bhoomi Group, thinks first-time homebuyers should receive certain tax breaks. The government ought to think about raising the Section 24(b) deduction for home loans from Rs. 2 lakh to Rs. 5 lakh. Positive consumer perceptions will arise from this, stimulating an increase in home demand. A wider group of prospective homeowners should be included in tax breaks and credit subsidy programmes.
“The tax rate on long-term capital gains from the sale of residential property should be 10%. (provision similar to section 112 for equity shares). Additionally, the holding term for the residential property should be lowered from the current 24 to 36 months to 12 months in order to qualify as a Longer – term Capital Asset “said Hiranandani Group managing director Niranjan Hiranandani.
Hiranandani continued by saying that the restriction on subvention programmes should be abolished. The ban does not benefit home buyers because a sizable portion of them are unable to afford both their rent and the EMIs on their under-construction mortgages.
CREDAI-MCHI treasurer Pritam Chivukula urges the government to reintroduce the GST with a tax credit for inputs on properties that are still being built. This will lower property pricing and increase demand from homebuyers.
