We call upon the government to incentivise first and second home purchases with adequate tax breaks. This would broaden the scope of the home buyer base, bringing in much needed liquidity into the sector. Interest rates on home loans are on the rise; this is a dampener to the housing sector and property sales. Additional tax sops and other benefits should be offered to home buyers in order to make home buying more attractive and improve property sales.
We wholeheartedly welcome the efforts of the government in promoting affordable housing across the country. In line with this policy, the government needs to consider increasing the cap of Rs. 2 lakh per annum to at least Rs. 5 lakh against interest rate deduction under section 24(b) of the Act. This will be a big relief to home buyers in the affordable property segment. Additionally, removing or increasing the 45 lakh cap in the affordable housing segment for metro cities would be advisable. This considering that construction costs and other allied materials are rising and so is the cost of buying a home.
The government should revise the cap up to Rs. 1 crore in the metro cities for first time home buyers in the affordable housing category to those availing credit link subsidy scheme benefits. We expect the government to announce tax reliefs for rental housing projects, attracting large investments in these schemes; thereby promoting rental housing in India.