NAREDCO suggests tax rationalisation for realty in Budget

New Delhi, Jan 14 : The National Real Estate Development Council (NAREDCO) has recommended the government take up tax rationalisation measures in the upcoming Union Budget to boost the pandemic-hit real estate sector of the country.
On Thursday, the industry body urged the govenrment to enhance the loan to value (LTV) ratio up to 90 per cent across the board for home loans.
“Allowing interest on home loans for income tax deductions without any ceiling, current interest deduction under section 24 of IT Act 1961 on housing loans of Rs 2 lakhs should be removed in order to incentivise home buyers,” it said in a statement.
It noted that two segments, rental and affordable housing need impetus in this budget. For rental housing, the government should enhance HRA tax exemption, and increase depreciation rate for the rental projects like in commercial buildings and allow ‘carry on’ of loss from rental income.
“Similarly, affordable housing will benefit from increasing completion period to six years, while enabling concessional lending rate for Affordable Housing Projects. Extending the Credit Linked Subsidy Scheme (CLSS) for all segments will support home buyers,” NAREDCO said among other suggestions.
It has also urged th govenrment to allow more stress funds for the sector along with other measure to improve the liquidity.