Pre-budget expectations by Mr. Kamal Khetan, CMD, Sunteck Realty Ltd
We expect the wheels of reforms and the impetus to the real estate sector to accelerate the growth of the GDP further, with the vision, “Housing for All by 2022” being at the centre of this year’s Budget.
Enhancing the ambit of Affordable Housing:
With regards to affordable housing, the Govt will have to revisit the nomenclature defining the segment to accommodate more people within metropolitan regions. Enhancing the cap (of Rs 45 lakhs) in metro cities to Rs 80 lakhs to Rs 1 crore will extend the benefit of affordable housing. Such a move would allow more buyers to avail of benefits like lower GST, Govt subsidies, and a tax deduction on interest repayment.
Other benefits:
There is an expectation that the tax exemption on the interest would be hiked to Rs. 5 lakhs from the Rs 2 lakhs at present. There is also a need for deductions on home loan principal repayment as well as extending the loan repayment period to give more relief and inducement to buyers
To sustain the current growth momentum, the sector needs to be accorded the infrastructure status that would improve liquidity in the sector. We also expect the input tax GST credit for developers and a reduction in stamp duty and registration charges – as announced by a few states last fiscal – to continue. The Govt must make more announcements to enhance the ease of doing business for developers.