Amid the COVID-19 impact last year, the real estate sector witnessed a surge in housing sales in top cities to 90%. There is a high expectation among the homebuyers as well as realtors looking forward to the Budget 2022 upcoming this year. However, uncertainty over the Omicron pandemic might impact the real estate activities but all eyes are on the upcoming Budget 2022.
Homebuyers, Realtors and Brokers are in demand to hike the Rs.2 lakhs tax rebate on home loans interest rates under section 24 of the Income Tax Act, 1961 to Rs.5 lakhs. This hike will ultimately lead to an increase in housing sales as well as robust demand for affordable and mid-segment categories homebuyers. Also, the salaried professional can come in the bracket of owning a dream home if the ministry proposes the expected tax reform in the upcoming Budget 2022.
As per CREDAI, they have submitted the recommendations to the central government to increase the interest deduction for homebuyers for tax rebates to boost the overall sentiments of homebuyers in the difficult times with the ongoing third COVID wave.
There is also a larger perspective for homebuyers in terms of redefining affordable housing criteria. However, affordable housing is determined on the basis of property size, price, and income of the buyer, this might alter the government’s decision to look for revising the city-wise pricing parameters to include a safe haven for homebuyers in this segment.
Also, realtors are of opinion that government should reduce the TDS on property transactions for NRIs and offer relief on tax penalties on the difference between circle rates and agreement values of properties. It is expected that government should consider extending the relief on tax rebates to up to 20% of the difference.
