The real estate sector wants stimulus in the form of sops in the upcoming Union Budget to boost housing demand, a top Credai Bengal official said. The demands comprise personal tax relief, tax rebate on housing, extension of interest subvention, Goods and Services Tax (GST) waiver, infrastructure status for the realty and easing liquidity for the sector, the official said. The Budget for financial year 2021-22 will be presented on February 1.
In recent months, the government had offered Rs 25,000 crore stress asset fund for the uncompleted housing projects, increasing the differential from 10 per cent to 20 per cent under Section 43(CA) of the Income Tax Act till June 30, 2021 were announced apart from ongoing interest subvention scheme.
‘The year 2020 has been an unprecedented period in human history that disrupted the normal course of life. Since the outbreak of the pandemic in India earlier this year, the real estate sector reeling under a liquidity crunch, witnessed a flurry of challenges, Credai, West Bengal, president Sushil Mohta stated.
"There is a need to bolster the real estate sector that contributes 8 per cent of the country's economy as it is gearing for a big leap in the next 10 years," he said.
Global real estate consultant Knight Frank India chairman and managing director Shishir Baijal in a pre-budget wish demanded A separate annual deduction of Rs 150,000 that will provide the much-needed fillip to opt for house purchase. On the aspect of housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing, he said.
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