The announcements increasing in the Income Tax exemption limit and the deduction limit on interest on loans for self-occupied houses in the Union Budget for 2013-14 are seen as two key growth drivers for the construction industry which had faced dull market conditions over the last couple of years.
“The increase in IT exemption limit to Rs. 2.50 lakh and the deduction limit on interest on housing loans to Rs. 2 lakh will help us. After facing a gloomy situation over the past few years, the announcement could well be the much-needed oxygen for the industry,” said T.V. Murali, president, Confederation of Real Estate Developers’ Associations of India, Tiruchi Chapter.
Mr. Murali said the thrust on power and infrastructure would help the construction industry indirectly.
“If the other sectors are performing well, we too can expect an improvement in investments,” he said.
M. Sidarthan, former chairman of the Builders’ Association of India, Tiruchi, said the budget could give a boost to housing sector, especially in view of the increase in IT exemption limit for individuals and senior citizens and deduction on interest on housing loan.
Besides, the reduction in excise duty on certain goods would have favourable impact on construction industry, he said.