Image Source : FREEPIK Image used for representational purposes.
With all eyes on the upcoming Budget, the realtor’s apex body CREDAI has suggested that the government in the upcoming should fix the income tax on affordable housing projects at only 15 per cent, which would help to boost the supply of low-cost homes to the maximum demand. This recommendation, if put into action, could come as a huge relief to the middle-class families of the country who are looking to buy homes at lower prices.
By advocating for a 15 per cent income tax rate for affordable housing projects, CREDAI aims to make it more financially viable for developers to build low-cost homes.
The current definition of affordable housing may not include many homes that could be affordable for middle-class buyers. CREDAI’s call to revise the cap on affordable housing prices (currently set at Rs 45 lakh) could make more homes available within the financial reach of the middle class.
CREDAI National President Boman Irani said, “With its immense contribution to GDP, employment generation, and infrastructure, the Indian real estate sector has always been at the forefront of nation-building. Currently influencing approximately 53 per cent (directly and indirectly) of India’s GDP and employing over 8 crore individuals, this sector holds the key to addressing the housing needs of 40 crore Indians who lack adequate homes.”
“With a vision to provide 7 crore homes in the next 7 years and generate 2 crore new jobs, Irani said the CREDAI’s recommendations for Budget 2025 aim to address long-standing challenges and unlock the sector’s true potential. We are confident these measures will catalyse growth, empower homebuyers, and support India’s economic ambitions,” he said.
By suggesting an increase in the deduction limits for home loan principal and interest, the realtor’s body also advocated for greater financial relief for middle-class individuals who are paying off home loans. This could help reduce their tax burden and ease the cost of owning a home.
(With PTI inputs)
