Pune, 30th January 2024: As the nation awaits the Union Budget, Ranjit Naiknavare, president of CREDAI Pune Metro, has articulated key expectations and proposals to propel the real estate sector towards growth and sustainability.
1. Increasing Tax Exemptions:
One of the primary demands put forth by CREDAI is an augmentation of tax exemptions concerning the principal repayment of housing loans. Currently capped at Rs 1,50,000 under section 80C of the Income Tax Act, CREDAI advocates for a substantial increase in this limit. Additionally, the proposal includes the introduction of a standalone exemption dedicated to the deduction for principal repayment of housing loans.
2. Re-defining Affordable Housing:
Recognizing the significant surge in real estate prices over the past seven years due to inflation, CREDAI emphasizes the need to revisit the definition of affordable housing. The current cap of Rs 45 lakhs, established in 2017, is deemed impractical by the real estate sector. Based on National Housing Bank (NHB) data indicating a 24% increase in housing rates since June 2018, CREDAI suggests a revision in the definition. The proposed criteria are a unit with a 90 square meters RERA carpet area in metro cities and 120 square meters RERA carpet area in non-metros, without a cap on the cost of the housing unit. Furthermore, CREDAI urges the reintroduction of 80IB benefits to incentivize developers to engage in affordable housing projects.
3. Boost for India’s Young Population:
In alignment with the vision of the Amrit Kaal, CREDAI urges the government to introduce schemes that cater to India’s young population, especially those below the age of 40. A specific proposal involves the reintroduction of the Credit Linked Subsidy Scheme for the ‘MIG’ (Middle-Income Group) segment. This initiative aims to encourage first-time homebuyers among the young demographic, potentially boosting the real estate market.
As the real estate sector eagerly anticipates the budgetary announcements, CREDAI’s proposals underscore the need for proactive measures to address evolving economic dynamics and propel the housing sector toward a path of sustained growth.