Expectation of the Chennai Realtors is that the Union government should increase the income tax exemption for up to Rs 3 lakh paid as interest on housing loans in a year which is 1.5 lakh at present which will help to boost the real estate market.
The Confederation of Real Estate Developers’ Associations of India have expressed that the realty sector and housing policy should be modified in order to address a huge demand of 26 million homes. “Inordinate delay in the sanction of approvals have hit hard. Provision of single-window clearance for real estate development projects is the need of the hour,” said CREDAI president T Chitty Babu.
In addition he also said that “Some of the measures like creation of Special Residential Zones can help. Affordable housing sector should continue to grow based on the incentive given for borrowings from banks for homes.”
Also Chitty Babu said that “The present limit for deduction under section 80C is Rs 1 lakh. In addition to the present deduction of upto `one lakh, a separate limit of up to Rs three lakh deduction be permitted for repayment of principal portion of housing loan for self occupied residential property.” Also the present limit for deduction of interest against “rental income” under section 24(b) for self occupied property should be increased from 1.5 lakh to Rs 3 lakh. Even the 36-month holding period which is a must for qualification, as a long-term capital asset should be reduced to 12 months.
Siva Krishnan, head of residential services (Chennai), Jones Lang LaSalle India, said that “The market, which was struggling last financial year, has picked up and we expect the government to enhance the income tax exemption limit.”
