The unfulfilled demand of more than 24 million houses in the country needs large scale impetus to achieve desired results. Allowing deduction for investment into affordable housing is a welcome step and will surely boost morale of housing industry and will accelerate investments in affordable housing.
Increase limit to 15 lacs for 1% subvention, increasing limit to 25lacs for priority lending for home loans are welcome. However much more could be done to accelerate supply of affordable housing stocks. Also we register our displeasure over MAT in SEZs. Government should not deflect from declared policy of tax exemptions as this gives wrong signal to investors in such projects.
We do not see any announcement on 80 IA and 80IB of IT act, which was expected. Also 30 to 36%of value of a flat is tax. We expected government to announce special schemes for affordable housing giving relief. We also expected relief and clarity through amendments for80 Ib(housing) and 80 IA (IT park ).
Supporting middle class through increasing deduction on home loan interest to 2.5 lacs was expected but did not come. Generally though we can see governments’ desire to assist Real estate sector, we expected many dynamic ideas in this budget to achieve desired results.
Hope this is a beginning of an era of dynamic initiatives to achieve desired result in Housing sector.
