Real estate sector has sought an increase in the limit of tax deduction from the current Rs 2 lakh to Rs 5 lakh which is given to the home loan borrowers.
The real estate body CREDAI has also urged for a deduction in tax for investments on Real Estate Investment Trusts (REITs), in a letter to the Finance Ministry. It has further demanded tax-neutral consolidation of businesses through the merger of amalgamation to help homebuyers caught in stalled housing projects, according to an ET report.
HarshvardhanPatodia, President, CREDAI has said, he expects the upcoming budget to provide a much-needed boost to the infrastructure development by introducing various relaxations and extensions. The industry seeks the finance ministry to hike the deduction limit for homebuyers for tax rebates under Section 24B.
Further, amendment to section 80C of the Income Tax Act, 1961 to increase the limit for repayment of housing loan principal or alternatively introducing another section for deduction with respect to repayment of housing loan principal is also among the key expectations have made by realty developers to the ministry.
The developers have also urged to change the definition of affordable housing,which takes into account the ticket size of the apartment instead of area. A new provisioning for rent housing scheme, single-window clearances, input tax GST credit for developersare some of the other key demandsin the Union Budget 2022-23.