Income tax exemption on home loan may increase in the budget, know what will be the benefit

The country's interim budget will come on 1 February. There may be many election announcements in this budget. Real estate is sitting with great expectations on this occasion. Experts are confident that this time in the budget, the government can increase the scope of income tax exemption on home loan from Rs 5 lakh to Rs 7 lakh.

The countdown to the interim budget has started. Since it is an election year, there will be a lot of gifts in this budget. However, different sectors also have high expectations from this interim budget. In which real estate is also sitting with a lot of hope. At present, there is a rebate of Rs 5 lakh in income tax on home. Which can be increased in this budget. Will the government bring a new investment policy to provide relief to real estate? Will FDI be encouraged in this sector? Will the scope of income tax exemption on home loan be increased? Many such questions are roaming in the minds of people in the real estate sector. Let us also tell you what kind of expectations the real estate sector has from this interim budget.

Tax scope may increase

Manoj Gaur, Chairman of CREDAI NCR and CMD of Gaur Group, said that in this budget, along with increasing the tax scope of home loans, this sector is also expected to get the status of industry. According to Gaur, real estate has always played an important role in the Indian economy. They are expecting strategic fiscal measures from this budget to stimulate demand for home buyers and developers, address liquidity concerns and simplify regulations.

Real estate is expected to get this relief

According to Nayan Raheja of Raheja Developers, work can be done in the direction of single window clearance in this budget, which will help this sector a lot. With this, it will take less time for developers to get approval. Due to which the construction of the project will be done on time and delivery to home buyers can be done on time. In view of the continuously high demand for houses in this sector and the limited launch of new houses, there must be some announcement regarding affordable houses also.

Need for this policy

According to Sanjay Sharma, Director of SKA Group, there is less hope of income tax exemption in this budget not only for the real estate sector but also for the common people. If the government makes any announcement on this policy in the transferred budget, the sector will benefit greatly. Due to which the economy of the country will also become very strong. On the other hand, County Group Director Amit Modi said that under Section 24 of the Income Tax Act, it is necessary to increase the tax exemption on home loan interest rates from Rs 2 lakh to at least Rs 5 lakh. Doing so could lead to a more robust market for housing, especially in the budget home segment, which has seen a decline in demand since Covid.

Real estate needs support

According to Yash Miglani, Managing Director of Migson Group, Covid has badly affected affordable housing. Developers need to take important steps like tax incentives to create more affordable housing and encourage them. This will not only give strength to developers but home buyers will also benefit from it. On the other hand, Rajat Goyal, Managing Director of MRG Group, says that it is expected that like last year, 2024 will also see a boom in the real estate sector. There is no doubt that increasing the exemption limit on home loan interest will increase the number of affordable home buyers. Tax exemption will be a good step for home buyers as well as the real estate sector.