With Covid affecting the construction sector, president of the Maharashtra unit of the Confederation of Real Estate Developersâ€™ Associations of India (CREDAI) Sunil Furde said the realty and allied sector are pinning their hopes on the government to revive this ailing sector by announcing various sops in the Budget session.
Furde, who represent 61 cities through CREDAI Maharashtra, emphasised on their demand made to the central and state governments for the reduction in stamp duty, extension of PMAY and CLSS to Pradhan Mantri Awas Yojana till March 2023, standardised deduction on rental income from 30% to 50% and increase in income tax deduction on home loan from Rs 2 lakh to Rs 5 lakhs.
â€œLast year, the government gave a rebate on stamp duty on home purchases. It had a positive effect on home buying and selling transactions. However, this concession should be extended this year too. Hence, the consumers will be encouraged to buy a home thereby increasing governmentâ€™s revenue. Also, the stamp duty for purchase of houses up to Rs 50 lakh should be reduced,â€ he said.
He added, â€œThe Income tax deduction limit on home loan interest should be increased up to Rs 5 lakh. Such remedies will benefit the common man. Also, the price of affordable housing should be increased from Rs 45 lakh to Rs 75 lakh along with a discount on interest rates on home loans.â€
â€œCREDAI had recently conducted a survey wherein developers suggested the government take proactive measures to prevent any major losses to the sector due to the third wave of Covid-19. The developers also emphasised on controlling the cost of raw materials, getting input tax credit on GST, increasing the availability of funds, streamlining and speedy approval of projects and to encourage more investment in the business for the betterment of homebuyers and the construction sector alike,â€ said Furde.