While the real estate sector is looking at a robust housing demand revival in 2022, it also expects the Union Budget 2022 to play a supportive and enabling role.
“The real estate sector is looking at a few tax relaxations such as hike in Rs 2 lakh rebate under section 24, as in the aftermath of the pandemic, the profit margins are already low and developers have to compensate for the lost time. A single window clearance mechanism has remained a demand for many years now. In addition to this, it is an opportune moment to award industry status to the real estate sector so that it can avail cheaper credit facilities from financial institutions. In addition to this, a GST waiver for under-construction properties, and incentives for private investment in affordable housing sector will be enabling. Easing of liquidity and short term tax holidays might go a long way in boosting overall recovery of the realty sector,” says Dr. Atul Goel, MD, Goel Ganga Group & President (Elect.), NAREDCO Pune
According to Nakul Mathur, MD, Avanta India, In the new budget, they would request the finance minister to reduce the TDS deduction rates on coworking spaces as most of the receivables from the client is towards services.
“It would be best if the finance minister considers to bring coworking spaces into 2% TDS slab as in case of services from the present 10% . This will immensely help the coworking spaces in management of their cashflows,” he says.
According to Raghunandan Saraf, Founder & CEO, Saraf Furniture, with the Government’s strong focus on big bang reforms to strengthen the economy and promoting entrepreneurship through ‘Make in India’ and PLI schemes is a big plus, expectations are high from the upcoming.
“The finance minister will aim to support the tax payers in direct or indirect ways to boost the disposable income in their hands. The tax relief will eventually lead to more liquidity in the hands of the buyers. Nothing could be better if the government slash the tax rates for both buyers and sellers as it will rejuvenate the market as the demand for housing and high end products is poised to rise.
However, the expected rate hikes from the RBI could be a major concern to watch out for as it may push out the liquidity from the economy at a fast pace,” Saraf says.
Siddharth Maurya, Resource Specialist, Expertise Real-Estate and Fund Management says, “Real estate is one of the key pillars of the Indian economy contributing around ~8% to the overall GDP. The government must acknowledge the important role played by the sector and make deep policy reforms to accelerate growth in realty demand. Currently, concession can be availed in income tax on up to 2 lakhs paid as interest on home loans. This should be revised and increased to build healthy demand in the sector. Likewise, waivers or reductions should be offered on GSTs on raw materials such as cement, steel, etc. Raw material prices are increasing and reduction in GST rates can give a lot of relief to the developer fraternity. Giving infrastructure status to the sector is also long due as it can help in building liquidity in the sector.”
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Story first published: Thursday, January 13, 2022, 7:58 [IST]
Original news source Credit: www.goodreturns.in