CREDAI seeks tax sops to boost housing demand
It also recommends for increasing the deduction limit on home loan interest to Rs5 lakh from the current Rs2 lakh
New Delhi: Realtors apex body CREDAI has sought various tax sops to boost housing demand, including increase in the deduction limit for interest on home loans to Rs 5 lakh from the current Rs 2 lakh.
In its Budget recommendations to the Finance Ministry, CREDAI which has around 13,000 developer members, has also sought infrastructure status for the sector and change in definition of affordable housing. CREDAI's National President Harshvardhan Patodia expects the upcoming budget to give much-needed impetus to infrastructure development and housing by introducing various amendments, relaxations and extensions.
"We urge the Finance Ministry to increase the interest deduction for homebuyers for tax rebate under section 24(B) to boost the overall home buying sentiment especially in these difficult times with the onset of the third wave," Patodia said. CREDAI also demanded amendment to Section 80C under the Income Tax Act to increase limit for repayment of housing loan principal, reduction in income tax burden on rental housing and long-term capital gains on capital assets.
On interest deduction on home loans, CREDAI said that "in case of individuals, the interest in respect of first self-occupied property should be allowed without any limit." Alternatively, the limit for deduction of interest should be increased to Rs 5 lakh in respect of the self-occupied property, it added.
CREDAI said the limit of Rs 45 lakh on the value of property to qualify as affordable housing renders housing in metros ineligible for the benefits under Section 80 IBA, which promotes the development of such low cost homes.
