Hyderabad, Jan 9 (FN Agency) The housing segment requires special focus in the upcoming Union Budget 2023 as key interest rates are currently at a three year high, said Murali M, CMD, Shriram Properties Ltd here on Monday. In a statement, Murali, while sharing on the budget expectations for the real estate sector, said giving a bigger thrust on housing will have a multiplier effect on the economy as over 135 industries are connected to the real estate.
Currently for property that falls under the affordable housing bracket –45 lakhs close to about 25 per cent to 30 per cent goes on taxes. So it is imperative for the government to remove GST for affordable housing or reinstate input tax credit so that the benefit can be passed on to the customer, he opined. In addition, the Government of India needs to impress upon State Governments to work towards reducing stamp duty, he said additionally, deduction under section 80C for principal repayment of housing loan should be increased from the present limit of Rs 150,000 and alternatively, the deduction for principal repayment of housing loan can be considered for a separate or standalone exemption. All this will further address the noble mission of the Prime Minister of housing for all and affordable housing will be accessible to a larger section of people, he said. On another note, presently only six states in the country including Karnataka contribute around 52 percent of the GDP of the country. It would come as a boost to these states if the Union Government can incentivize these states by prioritizing infrastructure allocation, rationalizing tax methods and promoting ease of doing business, said Murali. The government should also leverage the industry strengths of each state — textiles in Tamil Nadu or gems and jewellery in Gujarat to name a few and create larger economic zones in these industrial hubs.
Implementing the faceless systems for sanctions and approvals across the country will address uniformity of approach and uniform application of law and make the processes more efficient, he said it is encouraging and heart-warming that the Government is appreciative of the sectoral importance and contribution of the real estate sector to the economy as whole. The Real Estate sector is eagerly looking for all-time high favourable budgetary support, he added.