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The Confederation of Real Estate Developers’ Association of India is ‘largely disappointed’ with the Finance Minister P. Chidambaram’s Budget proposal relating to the housing sector.
Except for minor sops, the Budget has missed the opportunity to boost housing supply, which would have had downstream benefits for the economy, according to Lalit Kumar Jain, President, CREDAI.
The Minister has given a tax benefit to the first-time homebuyer who takes a loan of up to Rs 25 lakh, an additional deduction of interest of Rs 1 lakh for the Assessment Year 2014-15. This is in additional to the deduction of Rs 1.5 lakh allowed for self-occupied properties under Section 24 of the Income-Tax Act.
Chidambaram has also announced a Rs 2,000-crore hike in the Rural Housing Fund to Rs 6,000 crore and plans to set up a Rs 2,000-crore Urban Housing Fund through the National Housing Bank, the refinancing institution.
Jain said nothing substantial had been announced except for CREDAI’s recommendation of support to the first-time homebuyer. The Association had hoped to be accorded industry status, measures to encourage FDI and steps to increase supply of rental housing.
R.V. Shekar, Managing Director, Lancor Holdings, said the income-tax benefit to the first-time home-buyer would amount to one month’s EMI for someone borrowing up to Rs 25 lakh. To that extent the Budget is ‘buyer-friendly.’
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