Mumbai: The Union Budget unveiled on Saturday has hardly offered any significant benefits to the realty sector especially when affordable housing remains key issue among the citizens.
Though the real estate sector lobbied for various incentives like conferring industry status, increasing subsidy for the affordable housing as well as decreasing the interest rates for home loans, the government seems to have turned a blind eye to these demands.
Finance Minister Nirmala Sitaraman in her speech announced the second tranche of SWAMIH (Special Window for Affordable and Mid-income housing scheme) worth Rs 15,000 crore which aims to complete construction of one lakh housing units. The scheme funds the stressed housing projects and ensures their speedy completion so that the beneficiaries get their dwellings.
Anand Gupta, Vice President, Builders Association of India (BAI) said though money is allocated to SWAMIH and infrastructure projects, much needs to be done for the realty sector. “It is unfortunate that we did not get the industry status and even concessions as this sector plays a huge role both in boosting the economy as well as the generating employment,” said Gupta.
Similar is the view of Saransh Trehan, Managing Director, Trehan Group who said “The government’s continued push for affordable housing is a step in the right direction. However, key industry demands, such as industry status for the real estate sector and a streamlined single-window clearance system, remain unaddressed. These reforms are crucial to enhancing ease of doing business, expediting project approvals, and ensuring faster delivery of homes.”
Another proposal made by the Finance Minister is she has proposed a hike of Tax-deducted at source (TDS) for income tax for rental income to Rs 6 lakh annually from the present Rs 2.40 lakh. This benefits from those who own second homes and get rents from them.
Commenting on this issue, housing activist Ramesh Prabhu, Chairman, Maharashtra Societies Welfare Association (MSWA), which deals with cooperative housing societies issues, said though the TDS hike is welcome, home buying still remains a dream especially for majority citizens of metro cities. “The houses still are exorbitantly priced and on top of that taxes also remain high. We expected some relief in this budget but there is nothing per se,” rued Prabhu.
The real estate sector had created a wish list like revising the affordable housing price cap from Rs 45 lakhs to Rs 60 lakhs as prices have risen significantly ever since it was unveiled one decade back. Similarly increasing the income tax deduction limit on interest payments under Section 80C from Rs 2 lakhs to Rs 5 lakhs. There was also demanding for reduction of home loan interest rates. However nothing has been done on this front.
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