To achieve the Prime Minister's dream of “affordable housing” in
the country, we have some expectation from Union Budget Today.
Following
are some Key Points:
Tax
Benefits on Home Loans: Secondly, instead of allowing home buyers
tax benefits post-possession, the Union Budget should make a
provision that allows these from the time they start paying interest
on housing loans, that will reduce the tax burden on the home buyer
and the developers may see an approximately 15% rise in sales as a
result.
Single
Window Clearance:
The
biggest delays in delivery of houses occur due to delay in approvals
of projects and authorities have a major role to play in. An online
single window clearance with bare minimum human interface and precise
deadlines for approvals will not only bring down the deliveries of
the project by at least 3 years but also the cost of the project by
at least 15% which can further be passed on to consumers.
Exemption
Limit on Interest on Home Loan:
We hope
in this budget govt should raise tax deduction limit for housing
loans up to 5 Lakh from present limit of 2 Lakh per annum, a Rs 2
lakh limit may seem fine for a Rs 20 lakh house, but for Tier 1
cities where housing starts from a minimum Rs 50 lakh house, there
present exemption is negligent. A similar limit should also be set
for principal loan repayment from Rs 1 lakh at present, which would
have had a positive impact on Realestate Sector.
Service
Tax Exemption for Residential Housing:
We hope
in this budget govt should remove service tax from Residential
Housing, since the entire tax burden is finally passed on the end
consumer, it will be the end consumer who will be the beneficiary at
the end of the day,
