Budget 2024 expectations: Perks for first-time homebuyers, tax sops, industry status top real estate players' wish list
NAREDCO Maharashtra, emphasised the real estate industry's anticipation of transformative changes in the upcoming Budget 2024-25. He highlighted the sector's pivotal role in the economy and its significant employment contribution. Acknowledging past reforms, Runwal called for an increase in the interest rate deduction cap to ₹5 lakh and a redefinition of affordable housing, particularly in metro cities.
He also called for continued incentives for affordable rental housing, tax benefits for first-time homebuyers, and the reintroduction of GST with an input tax credit. Additional proposals encompassing tax reliefs, single window clearance, reduced home loan interest rates, and the revival of subvention schemes for homebuyers. Runwal also advocated for an augmented SWAMIH stress fund, a second tranche with a corpus of ₹50,000 for stalled projects, and the long-awaited granting of 'industry status' to the real estate sector.
The budget should raise the cap on affordable housing from ₹45 lakh to ₹65 lakh, making incentives more accessible, according to Saurabh Garg, Co-founder & Chief Business Officer, NoBroker.com. A revision in Section 24 of the Income Tax Act is sought to increase the tax rebate on home loan interest rates from ₹2 lakh to at least ₹5 lakh. To boost real estate investment, suggestions include reducing the long-term capital gains tax on property from 20% to 10% and streamlining processes for Real Estate Investment Trusts (REITs).
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