Indian real estate expects some relief from the Budget for 2023-24. As on 01st February, the union finance minister will table the budget for the next fiscal year.
Undoubtedly, the property market in India is regaining its ground. Though, speculations are that some relaxations for the Indian realty industry can rope in Budget 2023-24. The experts feel that the tax relief if given will create a win-win situation for realtors and property buyers.
Here is a glimpse of what the Indian real estate expects from the Union Budget 2023-24.
1. Make Home Buying More Affordable
Post-pandemic, the sense of home ownership has strengthened. Hence, the expansion of the ambit for affordable housing is a must.
Presently, the price bracket of housing units up to Rs. 45 Lakhs is considered affordable homes. However, in a city like Mumbai, it is not feasible to offer homes within this price limit. Thus, it is pivotal to expand the price bracket from the current to Rs. 85 Lakhs or more according to the location. The expansion of the affordable housing price bracket will be an encouraging move. Post this, many more home buyers can avail of the existing advantages like 1% lower GST without ITC.
Indian real estate expects a revision of the price bracket for the affordable housing segment. If given, this revision will be a major boost to the Indian property market.
2. Indian Real Estate Expects Industry Standard
The Indian realty sector is still waiting to get industry status. However, this time, this long-time dream might turn into realty. So far, the Government has spent massively on infrastructural development. Considering it, the Indian property market is likely to get a huge budget sanctions from the Budget 2023-24.
3. Indian Real Estate Expects Affordable Housing More Affordable
Home buyers are feeling the heat of continuously increasing interest rates. In the pre-COVID-19 era, the affordable housing segment did a fair business. However, the pandemic disrupted the momentum. Hence, Government needs to make “Affordable Housing” more lucrative. The increase of tax rebate on housing loan interest up to Rs. 5 Lakhs will be a move towards making Affordable housing more affordable.
This tax rebate falls under Section 24 of the Income Tax Act. Indian real estate expects Affordable Housing more reachable. Also, the Union Government is suggested to waive the full interest component of home loans from their entire income.
4. Indian Real Estate Expects More Relief for Individual Taxpayer
The change to constant tax rates and slabs will act as a breather for taxpayers. However, it seems impossible as the Government would focus on other small and medium size industries.
Conclusion
The Indian real estate expects Budget 2023-24 to address all the above-stated issues. Other than this, an increase in fund sanctions will also be a thing that the Indian real estate sector is looking forward too.
