The Indian real estate sector holds the potential to contribute nearly 15 per cent of GDP growth, inclusive of employment generation and multiplier effect on 270 allied industries and could do with some fiscal help.

Wishlist

- Increase standard deduction to 50 per cent from 30 per cent in rental housing to improve residential rental yield similar to commercial realty.

- Enhance quantum of financing platforms like Special Window for Completion of Construction of Affordable and Mid Income Housing Projects (SWAMIH) up to ₹1,25, 000 crore to refinance stalled projects.

-Interest on home loans tax deduction should be extended up to ₹5 lakh to benefit home buyers

- Long term capital gains from sale of house property should be taxed at 10 per cent, similar to equity markets, to make real estate assets an equally lucrative for investments

- Individual tax should be reduced to 25 per cent from 42 per cent.

- Reintroduce subvention scheme to benefit homebuyers Expand the ceiling of affordable housing in metro cities up to ₹1 crore

Forecast

· There could be gentle fiscal consolidation aimed at alleviating K-shape divergence

· Conversion of growth into income and jobs is imperative. Tax rationalisation will leave room for more disposable income in hands, to spur the consumption economy.

· Reform and legal framework to be rewired in order to reduce compliance complexities and improve ease of doing business environment. This will enhance confidence index among the investors and consumers, aiding all-inclusive economic growth at a faster pace.

Flashback

· The extension of the beneficial Credit Linked Subsidy Scheme scheme under the Pradhan Mantri Awas Yojana initiative announced in the past was welcome.

· Affordable Rental Housing model has been a step in the right direction to meet the goal housing for all

Niranjan Hiranandaniis National Vice-Chairman, NAREDCO, and MD, Hiranandani Group

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