Mobility paves Samsung’s silver path
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Expressing concern over rising prices of steel and cement, real estate body Naredco has made out a case for further rationalisation of taxes, focus on affordable housing and need for innovative liquidity measures.
Ahead of the Union Budget for 2021-22, and in the backdrop of the aftermath of Covid-19, the Naredco team highlighted areas that the government could address to accelerate its growth.
For the real estate sector, which generates about 14 per cent of the jobs in the economy, and contributing to 7 per cent of the GDP, Naredco is optimistic of the government ushering in major reforms through policy interventions to mitigate the negative impact and stimulate the growth engine.
Also read: Covid-19: Budget documents will not be printed this year
Niranjan Hiranandani, National President, Naredco, said, “The fiscal impetus announced under Atmanirbhar Bharat has led to renewed consumer demand that led to the emergence of green shoots in the Indian economy and real estate sector. Tax rationalisation, additional stress fund, and ample liquidity tools will keep the momentum going and propel India towards becoming a $5-trillion economy.”
He suggested that the government could consider enhancing the cap of affordable housing from ₹45 lakh to ₹70 lakh, and also cross-subsidy of land to accelerate the growth of affordable housing.
Rajeev Talwar, Chairman, Naredco, said, “Interest on housing loans should be fully allowed under Income Tax deduction without any ceiling. The current limit of interest deduction under Section 24 of IT Act 1961 on housing loan of ₹2 lakh should be removed to incentivise home buyers and for spurring overall demand.”
“The RBI, through a notification in 2017, allowed a loan-to-value (LTV) ratio of up to 90 per cent for home loans for affordable houses of ₹30 lakh or less. The same facility should be permitted for other housing, including MIG and HIG,” Talwar said.
Naredco wanted the rationalisation of taxes through enhancing the LTV ratio up to 90 per cent across the board for home loans for affordable houses of ₹30 lakh or less, with the same facility being extended to MIG and HIG. It suggested making changes in the affordable housing segment and also extending the Credit-Linked Subsidy Scheme (CLSS) for all segments.
It said the initiative of establishing a ₹25,000-crore fund to help the real estate sector has brought about changes. It has sought ₹1.25-lakh crore via many HFCs / NBFCs that are ready to establish such funds for the ailing real estate sector. This would allow for faster appraisals and sanctions.
Also read: Budget expectations
On liquidity measures, it suggested a one-time restructuring of loans. With regard to SEZ, it wanted a nod for external commercial borrowings for the real estate sector and reforms for the Special Economic Zones, including extending the notification date for IT/ITeS SEZs and withdrawal of MAT.
Naredco suggested that the ban on subvention scheme be reconsidered for the direct benefit to flow to the home buyers.
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Antrix should adopt a different tactic than merely fighting over jurisdiction: Experts
Invest in relationships, enterprise, behaviour, effort and learning
From different types of osmoses to new membranes, researchers have come up with ways of drawing water
Only half the Sensex stocks have bettered the index’s return in the last 10,000-point journey
High valuation and stiff competition from larger players are a dampener
Investors with a short-term perspective can buy The New India Assurance Company (NIACL) stock at current ...
₹1490 • HDFC Bank S1S2R1R2COMMENT 1475146015051520 Fresh short positions are recommended with a stiff ...
What makes the new crop of young Indian cricketers such game-changing winners? Over and above their talent, ...
In these isolated times when people yearn for a slice of the familiar, amateur and professional chefs are ...
‘You ready to go to work?’ Joe Biden had asked Kamala Harris before naming her as his running mate. ‘Oh my ...
Writer Narendra’s latest book, rich with vignettes from Bastar and his native village in Uttar Pradesh, ...
Digital is becoming dominant media, but are companies and their ad agencies transforming fast enough to make a ...
Slow Network, promoted by journalist-lyricist Neelesh Misra, pushes rural products and experiences
How marketers can use the traditional exchange of festive wishes meaningfully
For Fortune, a brand celebrating its 20th anniversary, it was a rude shock to become the butt of social media ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...