 "Income tax rate on affordable housing projects be lower at 15%: CREDAI")
Realtors' apex body CREDAI has suggested that the government in the upcoming Budget should fix income tax on affordable housing projects at only 15 per cent, saying this would help enhance supply of low-cost homes that have maximum demand.
The Confederation of Real Estate Developers' Associations of India (CREDAI), which represents more than 13,000 developers, has made many suggestions for the upcoming Union Budget to address critical challenges faced by the sector.
The recommendations include revision of definition of affordable housing, tax sops to real estate companies to build affordable homes and enhancing deduction limit of principal and interest paid by individuals on home loans.
CREDAI has expressed serious concern over falling share of affordable housing segment in total fresh supply in the past few years. With reduction in supply, the share of affordable homes in the overall sales have also come down.
It has stressed on the need to arrest this declining trend on a priority basis.
"To boost the supply of affordable housing, CREDAI recommends extending the lower 15 per cent income tax rate, currently available to manufacturing companies, to affordable housing projects," the association said.
Also Read
The industry body believes that this measure would incentivise developers to increase their focus on affordable housing developments.
With prices in the real estate sector increasing by over 50 per cent since the affordable housing definition was introduced in 2017, CREDAI has urged the government to revise the existing cap of Rs 45 lakh.
CREDAI National President Boman Irani said, "With its immense contribution to GDP, employment generation, and infrastructure, the Indian real estate sector has always been at the forefront of nation-building. Currently influencing approximately 53 per cent (directly and indirectly) of India's GDP and employing over 8 crore individuals, this sector holds the key to addressing the housing needs of 40 crore Indians who lack adequate homes." With a vision to provide 7 crore homes in the next 7 years and generate 2 crore new jobs, Irani said the CREDAI's recommendations for Budget 2025 aim to address long-standing challenges and unlock the sector's true potential.
"We are confident these measures will catalyse growth, empower homebuyers, and support India's economic ambitions," he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)