Realtors seek tax sops, industry & infra status

New Delhi, Jan. 28: Real estate developers expect the government to provide industry as well as infrastructure status for the sector, increase the corpus of Rs 25,000-crore stress fund, and more tax sops for both homebuyers and builders in the upcoming Budget to boost property demand.

They also hope for single-window clearance for projects, measures to boost liquidity, reduction in the GST rates and availability of input tax credit on the GST paid in the Budget 2021-22, which will be presented on February 1.

"We sincerely hope that Budget 2021 brings some much-needed relief to homebuyers as well as developers," Tata Realty and Infrastructure MD & CEO Sanjay Dutt said.

As the sector's growth relies heavily on the upcoming financial amendments, he said the government should grant industry status to the real estate sector and a singlewindow clearance mechanism for faster completion of projects.

"One GST, one or no stamp duty regime and reduction in registration charges across states are some of the other recommendations which will make a significant difference to the cost of a project and will definitely encourage home buyers to invest," Dutt said.

Anshuman Magazine, chairman and CEO (India, South East Asia, Middle East and Africa) of CBRE, said, "Budget 2021 could go a long way towards meeting this goal by way of introducing tax reforms such as enhancing the principal deduction limit on home loans under Section 80C of the IT Act, 1961; lowering the long-term gains tax for sale of house property; and rationalising the GST for under-construction properties."

The government could also consider increasing the corpus of Rs 25,000crore Swahim fund, Magazine said.

Mumbai-based Kalpataru Ltd MD Parag Munot said the measures such as raising the income tax deduction ceiling on home loan interest, input tax credit on GST, and expanding the ambit of affordable housing to properties up to Rs 1 crore in Super Tier 1 cities such as Mumbai and Delhi, will significantly incentivise buying. "It would give the sector a muchneeded boost and accelerate the mission to provide housing for all by 2022."

Salarpuria Sattva MD Biajay Agarwal demanded the industry status to the real estate sector and a single-window clearance system.

PropTiger and Housing. com CEO Dhruv Agarwala said the liquidity crunch being faced by the sector needs to be resolved and the subvention scheme reintroduced in the Budget.