Interim Budget 2024: Realty Sector Seeks Reintroduction Of Interest Subvention Scheme; Separate Deduction For Principal Repayment

The real estate has pinned high hopes on FM Nirmala Sitharaman's Interim Budget 2024.

New Delhi: Ahead of the presentation of the Interim Budget by Finance Minister Nirmala Sitharaman on February 1, the Indian realty sector has pinned high hopes on housing segment.

For Manoj Gaur, CMD, Gaurs Group and Chairman CREDAI, reintroduction of interest subvention scheme and redefinition of affordable housing are among the prime demands that the realty sector would put forth in the upcoming budget.

Gaur said, "The real estate has pinned high hopes on the forthcoming budget. First of all, the sector is looking for the reintroduction of the interest subvention scheme to revive mass housing. Secondly, we are also seeking a redefinition of affordable housing, and the limit for it should be raised from 90 sq mtr in terms of space and 45 lakh in case of pricing. It will be a much-needed intervention as a considerable demand exists in the affordable housing segment."

Nayan Raheja of Raheja Developers has demanded single-window clearance system and industry status for the real estate.

"The demand for industry status for the real estate sector has been long-standing, and it is a major expectation from the upcoming budget. A single-window clearance system, a perennial request, is also seen as a time-saving measure for developers. Amidst a backdrop of high demand and limited new launches, a push for affordable housing is deemed crucial," said Raheja.

Mohit Goel, MD, Omaxe Group and Amit Modi, Director, County Group have also espoused the voice on granting industry status to housing sector. 

"The status of the industry would help in availing better financing," Goel added.

Rajesh K Saraf, MD, Axiom Landbase and Yash Miglani, MD, Migsun Group have demanded that government must consider reducing the GST rate on cement and initiatives to promote affordable housing through tax incentives.

Amrita Gupta, Director of Manglam Group and Founder President of CREDAI Rajasthan Women's Wing has demanded that maximum deduction for home loans be raised.

"Raising the maximum deduction for home loans under Section 24 of the Income Tax Act from INR 2 lakh to at least INR 5 lakh is crucial. This adjustment has the potential to reinvigorate the housing market," Gupta said.