Budget Wishlist: Redefine Affordable Housing, Give More Tax Sops, Say Real Estate Experts

Union Budget 2022-23: The real estate sector staged a recovery from 2020’s downturn.

New Delhi: Every year before the Budget, Finance Minister’s kitty gets filled with suggestions and wishes from all the sectors. This year, the real estate sector — which staged a recovery from 2020’s downturn — expected a range of measures from the upcoming Union Budget 2022-23.

“The real estate market has seen a rebound and displayed a lot of resilience post-pandemic. Now, to sustain the momentum, the real estate sector is looking forward to the much-needed reforms and incentives in the upcoming budget, especially as the sector is the primary contributor to economic growth,” Ramani Sastri – Chairman and MD, Sterling Developers Pvt Ltd, said.

“There is a need to redefine ‘affordable housing’ to Rs 50-60 Lakh as this would expand the benefits for homebuyers and therefore boost the end-user demand,” ┬áMr Sastri added.

At present, the price of affordable housing is Rs 45 lakh or below in non-metros for a carpet area of 90 sq meters or below. For metros, the price is Rs 45 lakh or below for a carpet area of 60 sq meters or below.

Mr Sastri also expected input tax GST (goods and services tax) credit for developers and reduction in stamp duty to boost homebuyers’ sentiment.

“More tax sops and higher relief on the home loan rates will woo broader segment of homebuyers and investors to buy property. The existing tax exemption on housing loans (up to Rs 2 lakh) should be raised to give impetus to buyer sentiment,” Lincoln Bennet Rodrigues, Chairman and Founder, The Bennet and Bernard Company, said.

Further, Manas Mehrotra, Founder, 315Work Avenue, expected special packages and tax relaxations for the start-up sector. “The co-working industry also expect special packages and tax relaxations for the start-up sector as this will boost the existing and upcoming start-ups, thereby increasing demand for c-working space. Presently, the rate of TDS (tax deducted at source) applicable on co-working services is 10 per cent as co-working companies provide renting of both movables and immovables. As the industry is going competitive, it will be good if the rate of TDS on co-working services is reduced,” Mr Mehrotra stated.

Finance Minister Nirmala Sitharaman will present the Budget on February 1.

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