Real estate developers want LTCG tax to be reduced in real state transactions along with a cut in income tax rates.
A proposal for exemption in Stamp Duty has been sent to the Ministry of Finance by the Ministry of Finance. It has been discussed during the preparations for Budget 2021. In such a situation, Finance Minister Nirmala Sitharaman can make a big announcement about this in the budget.
- January 24, 2021, 5:00 PM IST
According to information received by CNBC-Awaaz, there is also a proposal to give exemption in stamp duty to the real state sector. This will reduce the final price of the property for the buyers and will increase the real buyers’ income in the real estate sector. According to sources, a proposal for exemption in stamp duty has been sent to the Ministry of Finance by the Ministry of Corporate Affairs. These proposals have been discussed during budget preparations. In such a situation, it is believed that the Finance Minister Sitharaman can make a big announcement about this in the budget. The government can give tax concession. This will bring great relief to the buyers of the project.
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‘Include up to 75 lakh houses in affordable housing segment’Talking about the expectations of the real estate sector budget from 2021, the developers have demanded a separate fund to complete the stranded projects. He has demanded to restore the interest subvention scheme and include houses up to Rs 75 lakh in the affordable housing segment. The developers’ association NAREDCO has demanded that the government provide more stress funds to the real estate sector to overcome the cash crisis. At the same time, Credai, the builder’s organization, has demanded exemption in income tax to increase the buying capacity.
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‘Tax deduction limit on home loan to be increased from Rs. 2 lakhs’
Real estate developers want the LTCG tax to be reduced along the lines of equity in real estate transactions along with a cut in income tax rates. The interest subvention scheme should be restored to increase the deduction limit to 2 lakh in the interest of home loan and directly benefit home buyers. NAREDCO has expressed the hope that within three months the demand can again reach the level before Kovid-19. However, for this, the government will have to show speed on the stuck projects. Stakeholders associated with the sector, including banks, will benefit and buyers’ dream of a cheap house will also be fulfilled.