#NewDelhi: The Corona Outbreak affected all business sectors economically. After the situation returned to normal, everyone set foot on the path to recovery. Housing sales in the real estate sector have increased by 90% in the last one year compared to the pre-Corona level and the newly launched units have reached the 2019 level.
The third wave of coronavirus in India and Omicron is expected to hit the sector again. This is why real estate companies are looking at the forthcoming Union Budget 2022. Union Finance Minister Nirmala Sitharaman will present the budget in Parliament on February 1. The real estate sector is very optimistic about this budget.
Anuj Puri, chairman of Anark Group, said in a budget statement that “the residential sector expects easy access to financing and reduction in GST rates.”
According to Puri, if the following decisions are taken in the forthcoming budget, the real sector will reach its peak of development.
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Home loan up to Rs 5 lakh tax exemption
Under section 24 of the Indian Income Tax Act, no tax is levied on home loans up to Rs 2 lakh. According to Puri, this tax-free amount should be increased to at least Rs 5 lakh. This decision will increase the demand for affordable and medium-sized housing in a very short time.
Tax exemption on home loan capital repayment
Section 80C of the Income Tax Act was amended in 2014 to increase the annual tax deduction limit to Rs 1.5 lakh per house. The last several years have been the same. Puri thinks the tax-free capital limit should be increased by making changes to the tax slab or lowering the tax rate.
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Correction in housing prices
The government has set a price list for all metro and non-metro cities. The chairman of Anark Group said that the cost of a 60 sq ft housing unit in a metro city can be up to Rs 45 lakh but the place and market price is not the same in all cities. The cost of a 60 sq ft housing is Rs 45 lakh which seems reasonable in other metro cities but it is very low in cities like Mumbai. In addition to setting separate housing price lists for all cities, the price of 60 sq ft housing units in big metro cities like Mumbai should be kept at least Rs 75 lakh.
Tags: Real Estate, Union Budget 2022
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