Realty developers seek more government’s help to boost demand
Realty developers are seeking more support, in addition to the measures announced, including the Rs 25,000-crore stress fund for completion of stuck housing projects, from the government to boost the demand for housing and easing liquidity pressure.
Developers have reached out to finance minister Nirmala Sitharaman with suggestions such as allowing them flexibility on charging GST at 5% without income tax credit or 8% with income tax credit and home loan rates at 7% for the next two years for all categories of housing irrespective of low, middle or high income group project.
“A real financial impetus to the real estate sector can come with a major overhaul in terms of GST relief and curtailing home loan rates. The sector needs a one-time subvention scheme and restructuring of realty sector loans,” said Rajan Bandelkar, president, NAREDCO, Maharashtra. “Real estate sector needs treatment like information technology sector where tax holidays and moratorium played a key role.”
According to him, slashing of home loan rates will change the demand dynamics among the low, middle and higher income groups. The FM should consider enhanced deduction tenure for taxation purposes, which will boost home buying.
Builders have also suggested that any property purchased in the past one year till March 2022, the capital value as well as the interest paid thereon should be allowed as a deduction over a period of 5-7 years.