Sunday, 28 February 2016

Hope Parliament Budget 2016 is Fruitful

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,


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