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Ahead of the Union Budget, the Confederation of Indian Industry (CII) has urged the government to extend income limit under Pradhan Mantri Awas Yojana (PMAY) so that a wider section of society could benefit from it.
The CII suggested that the government should consider increasing the income criteria under PMAY scheme to ₹18 lakh and ₹25 lakh from the current ₹12 lakh and ₹18 lakh in the middle income group (MIG) I and ll categories.
“To meet a minimum GDP growth target of 6 to 7 per cent, it is very important to have a definitive plan for boosting the demand in the real estate sector, which will have significant impact on job creation in both formal and informal sector, as well as a multiplier effect on overall demand,” said Chandrajit Banerjee, Director General, CII.
CII has called for additional tax benefits to homebuyers to boost housing demand. The maximum available deduction on interest payment of home loans taken for all the property/(ies) should be increased from ₹2 lakh to ₹5 lakh.
“The announcement of an ₹25,000-crore Alternate Investment Fund (AIF) for providing last mile liquidity is a very welcome step. However, the sector needs more liquidity support and steps to boost demand,” the CII said.
It also recommended a focused action plan to boost the real estate sector as part of its pre- budget recommendations. CII also suggested that granting infrastructure status to integrated townships and overall housing sector, would also help developers access priority funding at a lower cost.
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