Empower Your Business with Our Budget 2023 Insights!
Empower Your Business with Our Budget 2023 Insights
As one of the largest employment generators and contributors to the national GDP, the real estate sector in India has high hopes for the upcoming budget of 2023. CREDAI-MCHI, the nodal agency for MMR real estate, has made several recommendations to make the budget a booster for the real estate sector.
One of the top recommendations is to grant industry status to the real estate sector, ensuring that developers have access to funding options for a more extended period, especially for large real estate projects. Another critical demand is for a single-window clearance system for real estate, which would facilitate business and attract investment in the sector.
The real estate sector has also recommended revising specific tax brackets in the budget to provide income tax relief on buying a second home and revising the tax slab on long-term capital gains from real estate. This revision would benefit home buyers and real estate investors, thus providing a boost to the industry. The industry has also proposed to reduce capital gains from 20 percent to 10 percent and reduce the holding period to 12 months.
CREDAI-MCHI has 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. The association has suggested creating a separate affordable housing index for each metro city based on 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 limited land availability, high premiums, expensive construction materials, and high labor costs. The proposal suggests increasing the price limit of affordable housing to Rs 1.5 crore from the existing Rs 45 lakh to address the issue. Extending Credit Linked Subsidy Scheme (CLSS) and Pradhan Mantri Awas Yojana (PMAY) subsidies will help the unorganized sections of the city and salaried working professionals to get homes.
CREDAI-MCHI has also recommended 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. The association has proposed removing 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, helping eliminate the gender pay gap and other forms of gender-based discrimination.
Moreover, 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. Kapoor Infra, one of the leading real estate developers in India, is committed to providing affordable housing solutions and promoting gender equality in property ownership. The company’s projects are designed to cater to the needs of all sections of society, including the middle-class and lower-income groups.
Kapoor Infra’s affordable housing projects include amenities such as parks, playgrounds, and community centers to promote a healthy and sustainable lifestyle. The company also ensures its projects are located in prime areas with easy access to public transportation, schools, hospitals, and other essential services.
Kapoor Infra’s commitment to promoting gender equality is evident through its various initiatives, such as providing easy access to home loans for women, offering discounts on property registration fees, and organizing awareness campaigns to encourage women to invest in real estate.
In conclusion, the real estate sector in India is looking forward to the budget of 2023 with high expectations. The recommendations made by CREDAI-MCHI are aimed at boosting the industry, increasing affordable housing options, and promoting gender equality in property ownership. Kapoor Infra is committed to contributing to these initiatives and providing quality affordable housing solutions for all.