Union Budget 2024: Real estate sector seeks tax holiday, reduced GST rates

Ahead of the Union Budget presentation on July 23, the real estate sector is eagerly awaiting enhanced financial inclusion measures to sustain its growth. Industry leaders have outlined several expectations aimed at boosting demand, supply, and sustainability.

Anuj Puri, Chairman of ANAROCK Group, proposes reviving the Credit-linked Subsidy Scheme (CLSS) under PMAY to stimulate demand among first-time homebuyers. He also suggests reinstating the 100% tax holiday under Section 80-IBA to encourage developers to enter the affordable housing market.

The real estate sector has urging the government to adjust the definition of affordable housing, reduce GST rates, and reinstate input tax credit (ITC). Introducing a single-window clearance system and enhancing tax benefits under Section 24(b) and Section 80EEA would also make home loans more affordable. 

Promoting green and sustainable housing through tax incentives and subsidies is another expectation.

Granting infrastructure status to the real estate sector would enable developers to access funds at lower interest rates. 

The hospitality sector is also seeking tax reductions, infrastructure development, and upgraded tourism promotion. Industry leaders like Anshuman Magazine, Chairman & CEO of CBRE, recommend increasing tax deduction limits, reintroducing tax incentives for REITs, and reviving additional I-T deductions for first-time homebuyers.

The sector expects reductions in capital gains tax rates, lowering of the holding period for properties, and removal of the cap on capital gains for reinvesting in two properties. 

Extending the completion period for under-construction properties and expanding the criteria for affordable housing would also provide relief. The industry is hopeful that the Union Budget will address these expectations and foster a sustainable environment for real estate development.

ANI