Home loan rebates highest on aam admi’s wish list
The common man wants more money in hand for investing in property; demands waiving of service taxes on property purchase
With BBudget 2015 round t he cor ner, t hose aspiringaspi to buy residentialdential propertproperties hope that this time round the basic exemption limit will be inincreased, putting more money in their hands. The wish list of ththe common man also include scscrapping of serviceice taxes applicableapplic on purchase of property and preferential location ccharges and more options in the affordable housinhousing segment.
MaMany homebuyers want a cleaner and greegreener life in cities anand hope that the BuBudget will introduduce some incentitives for installatt i on of sewage ttreatment plants Estat
Di and elevated cycling tracks in order to reduce pollution.
AN Dhawan, senior vice president, Federation of Noida Welfare Association, hopes the Budget will offer more relief with increase in basic exemption limit to ₹ 5 lakh. This will mean more money in the hands of the people which, in turn, will help them invest in property. “Their purchasing capacity will improve. Right now, it is very difficult to buy a house because property prices are too high and as far as affordable housing is concerned, there is not much stock available in the market. I hope more sops are offered to encourage developers to build more affordable housing units,” he says.
Abhishek Kumar, president of the Noida Extension Flat Owner Welfare Association, hopes that the basic exemption limit will be enhanced this year. Rebates offered on interest and principal amount of loan should also be allowed to buyers until possession of property, he says.
Home l oan t ax benefits under Section 80C for repayment of principal amount can be enjoyed by buyers only after their apartments are completed and completion certificate obtained by the builder. No deduction is allowed under 80C for repayment of principal when the property is being constructed. Interest benefit under Section 24 is reduced if the property is not constructed, acquired or completed within three years from the end of the financial year in which the loan was taken.
Also, the service tax of 3.09% applicable on property purchase and the tax on other services, amounting to 12.36%, should be waived, says Kumar.
Colonel Tejendra Pal Tyagi, chairman, RWA Federation, Ghaziabad and convener, Confederation of NCR RWAs, is of the opinion that use of CNG city buses should be made mandatory and that sewage treatment plants and effluent treatment plants should be a priority to reduce pollution in cities.
AS Gulati, secretary general, Confederation of RWAs, Faridabad, wants incentives to build elevating cycling tracks along highways and roads so as to reduce pollution in cities.