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Will the budget 2023 be towards the real estate sector?

Posted by kapoor Infra on January 24, 2023
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budget 2023

Will the budget 2023 be towards the real estate sector?

The real estate sector contributes about 7 percent to the national GDP, and is the largest employment generator for the country, employing over five crore people. As the nodal agency for MMR real estate, CREDAI-MCHI has high hopes for the upcoming budget 2023 and has made several recommendations to make it a booster for the real estate sector.

To begin with, we have reiterated our longstanding demand for the industry status quo for real estate to ensure that developers have access to funding options for a more extended period, especially for large real estate projects. Also, we hope that the budget 2023 will consider our other long-delayed request for a single-window clearance system for real estate to facilitate business and attract investment in the sector.

We have also recommended revising specific tax brackets in this budget 2023, as there is an urgent need for income tax relief on buying a second home and revising the tax slab on long-term capital gains from real estate, which would greatly benefit home buyers and real estate investors. Will get a boost. Industry. We have also proposed to reduce capital gains from 20 percent to 10 percent and the holding period should be reduced to 12 months.

More importantly, we have provided a detailed proposal to redefine affordable housing and increase the existing limit of Rs 45 lakh in urban areas and Rs 30 lakh in rural areas. Affordable housing is a subjective and relative term that varies from time to time and place to place; Therefore, a holistic approach is needed.

In this context, we have suggested to the Hon’ble Ministry of Finance to create a separate affordable housing index for each metro city based on fundamental factors such as inflation, land cost, construction cost, approval cost, and labor cost.

For example, Mumbai is one of the most expensive cities for housing due to a number of factors including limited land availability, high premiums, expensive construction materials, and high labor costs. Therefore, we propose to increase the price limit of affordable housing to Rs 1.5 crore from the existing Rs 45 lakh.

We recommended that Credit Linked Subsidy Scheme (CLSS) and Pradhan Mantri Awas Yojana (PMAY) subsidies be extended in a similar manner. Raising the ceiling will help the unorganized sections of the city and salaried working professionals to get homes.

Also, to increase the ownership of women in India, which is only 3 percent as compared to men. We have suggested some tax benefit schemes for working women including the introduction of a separate section for women to give tax benefits of up to Rs 3 lakh on the principal amount on the purchase of a first home.

Besides this, we have also proposed to remove the Section 24(b) ceiling of Rs 2 lakh on the interest paid by a first-time woman home buyer. A women-specific tax benefit scheme for property ownership could promote gender equality by making it easier for women to own a home, thereby helping eliminate the gender pay gap and other forms of gender-based discrimination.

Furthermore, increased women’s asset ownership would have positive economic consequences, such as increased consumer spending and housing demand, which would have a beneficial effect on the economy.

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