Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
One of the demands of the industry is on the extension of benefits under section 80EEA to avail an additional Rs 150,000 interest deduction on home loans to the existing homebuyers who have already availed home loans. He further advocates for extension of this benefit to the first-time homebuyers to include mid segment as well
The countdown for the Budget 2021 has begun and there is a lot of anticipation from the budget by all and sundry. Real Estate sector, which is one of the most important sectors for the overall economy has many expectations with it. Ramesh Nair, Chief Executive Officer (CEO) and Country Head (India) at JLL, on behalf of the industry, spelt some of the demands from the government. Take a look!
Incentives for Home Buyers?
One of the demands of the industry is on the extension of benefits under section 80EEA to avail an additional Rs 150,000 interest deduction on home loans to the existing homebuyers who have already availed home loans. He further advocates for extension of this benefit to the first-time homebuyers to include mid segment as well.
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He also called for separate provision for deduction of 'principal repayment' on home loans. Another demand is for restriction on setting off loss from house property against other heads of income at INR 2 lakh to be removed.
Incentives for Industry
- Nair also suggests for according an “industry status” to the real estate sector.
- Reduction in holding period of REITs for long-term capital gains
- Allow 100% FDI in completed residential real estate projects through the automatic route
- Allowing input tax credit on calculation of GST payable in real estate
“The government made necessary and timely interventions through liquidity infusion, fiscal support and reform driven investments in the initial leg of relief measures,” Nair said.
“Further, the Central Bank and the Central government rolled out other critical measures including loan moratorium, relaxation of NPA classification norms, one-time restructuring of corporate and personal loans (including home loans), etc,” he further said.
The JLL CEO was of the view that these measures and concessions had helped in enhancing consumer sentiment and boosted consumption. This has resulted in increased traction in the real estate sector, he emphasied.
“While we have seen a continuance of recovery in the fourth quarter which started in Q3 2020, the actual market transaction volumes continue to be lower compared to pre-Covid levels,” the CEO said.
The following additional measures will aid in spurring consumption, investment in the next few quarters, he pointed out.
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