Pune: The CREDAI Pune Metro has issued a press release stating their expectations from the Union Budget which will be presented on February 1 by Finance Minister Nirmala Sitaraman.
Suhas Merchant
CREDAI-Pune Metro President Suhas Merchant said, “In this year’s budget we are expecting Amendment to section 80IBA that is to Revise Affordable Housing definition to allow upto 90 Sq M. in Metros and 120 Sq M elsewhere, waiving of Minimum Alternate Tax (MAT) and extension of time limit to 31 March 2023.
There should be an Amendment to Section 80C to increase the limit for repayment of housing loan principal or alternatively introducing another section for Deduction with respect to Principal repayment.
We are expecting changes in Section 24 (B) for increasing interest deduction for Home Buyers and a new Provision for promoting Rental Housing.
Income from rental housing upto certain limits may be exempted. Also, an increase of safe harbor limit (20 per cent) under section 43 CA may be extended till the effect of pandemic on economy withdrawals and removal of section 43 CA for primary sale transactions.
Kohinoor Group Chairman and Managing Director Krishna Kumar Goyal said, “Considering the critical impact of COVID19 on the construction sector, the government needs to take concrete measures in this budget.
Some of our demands are to increase the income tax exemption mainly on construction till March 2022, increase the stamp duty exemption for another 3 months, reduce the rising income tax rate and resume the closed GST set-off.
In addition, I think the government should allow 30 to 40 per cent foreign investment in the project to help boost the sector.”
Gokhale Constructions Chairman and Managing Director Vishal Gokhale said, “Due to the pandemic the government had given a moratorium period of 6 months which proved to be extremely beneficial if the same is extended for some more time for the ailing real estate sector.
If not this then loan restructuring can be allowed. Real estate industry has been demanding industry status for a very long time. If such a status is awarded to real estate then it would be easier for fundraising.
Availability of credit for the real estate sector has been terribly affected. I hope the FM looks at this issue and takes an appropriate step. Deduction of Rs.2 Lakh under section 24 on the interest paid on home loan if increased more can facilitate home buying.
Lastly, I feel that the government should start the facility of taking input tax credit under GST and also think about reducing the GST charged on the sale of under construction homes.”