Tamil Nadu

No incentive for home buyers, say developers

Proposals with regard to affordable housing and input tax credit were disappointing, said CREDAI Tamil Nadu chairman S. Sridharan.

The real estate sector termed the Union Budget mostly disappointing, with a few welcome aspects.

CREDAI Tamil Nadu chairman S. Sridharan said while a few aspects were welcome, the proposals with regard to affordable housing and input tax credit were disappointing.

“We welcome the extension of allowance of ₹1.5 lakh for affordable housing for the developers as well as home buyers by one year to 2021. Tax holiday has also been extended by one year. Capital gain limit has been increased from 5% to 10%, to minimise hardship,” said Mr. Sridharan.

But the real estate sector has expressed disappointment at various aspects of the Budget. “We wanted affordable housing pegged at ₹75 lakh. Now it is pegged at ₹45 lakh. What is luxury in Chennai may be affordable in Mumbai. We want input tax credit to come back. It is causing hardship,” he said.

CREDAI Chennai president W.S. Habib said the Budget was very disappointing. “We expected a lot of relief to this ailing industry which contributes to 6-8% of GDP. The new optional scheme for income tax is very bad for the sector as there is no motivation for tax payers to avail themselves of home loan and buy property,” he said.

Suresh Krishn, past president of CREDAI Chennai, said it was the most disappointing Budget for real estate sector. “We were expecting some kind of incentive to promote real estate sector. But it has been disappointing. There is nothing to incentivise the home buyers in this Budget. Earlier, people used to buy home to save tax. That too has gone.”

Satish Magar, president, CREDAI National, said sector specific measures were not announced for real estate. “We expected bolder steps to provide liquidity for the sector, one-time restructuring of loans, and tax deductions on home loans to give impetus to buyer sentiment. The only way in which this Budget can boost real estate sector is by accelerating growth to 6.5% in 2020-21 from 5% at present,” he said.

Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE, said the Budget was progressive, touching upon every section of the economy. “The allocation of ₹100 lakh crore for infrastructure development in the next five years is a move in the positive direction. Increased focus on projects including housing, safe drinking water, clean energy, health, modern railway, airport, metro bus will lead to increased benefits for the real estate sector,” he said.

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Printable version | Mar 29, 2020 5:01:05 PM | https://www.thehindu.com/news/national/tamil-nadu/no-incentive-for-home-buyers-say-developers/article30716896.ece

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