NAREDCO’s Big Ideas to Help Real Estate Grow in India
The National Real Estate Development Council (NAREDCO) has shared several recommendations with the Indian government to boost the real estate sector ahead of the Union Budget. These suggestions aim to address current challenges and promote growth, contributing to the ‘Housing for All’ initiative.
Key Recommendations
NAREDCO suggests that the current rule of considering the annual value of property held as stock-in-trade as ‘Nil’ for up to two years should be extended to five years due to weak market conditions. They also propose increasing the limit of interest deduction on home loans from Rs 2 lakh to Rs 5 lakh and reducing the period for a house property to qualify as a long-term capital asset to 12 months.
Tax and GST Changes
Niranjan Hiranandani, Chairman of NAREDCO, emphasized the need for a comprehensive overhaul of tax policies to foster competitiveness. NAREDCO also recommends removing or increasing the limit for setting off house property losses against other income heads to Rs 5 lakh. Additionally, they urge the government to allow builders the option to pay GST at a concessional rate without input tax credit (ITC) or at a higher rate with ITC.
Affordable Housing Redefinition
NAREDCO suggests revising the definition of affordable residential apartments by retaining only the carpet area condition without the price limit. This change would help accommodate higher land prices in metro cities and extend affordable housing benefits to more projects.
G Hari Babu, President of NAREDCO, stated that these recommendations would provide relief to developers, stimulate demand, and contribute to the government’s vision of ‘Housing for All’.
Doubts Revealed
NAREDCO -: NAREDCO stands for the National Real Estate Development Council. It is an organization in India that works to promote and develop the real estate sector.
Union Budget -: The Union Budget is a yearly financial statement presented by the Indian government. It outlines the government’s revenue and expenditure for the upcoming year.
tax benefits -: Tax benefits are reductions in the amount of tax that people or companies have to pay. These can help save money and encourage certain activities, like buying homes.
GST rates -: GST stands for Goods and Services Tax. It is a tax on the sale of goods and services in India. Revising GST rates means changing how much tax is charged.
affordable housing criteria -: Affordable housing criteria are the rules that define what makes a home affordable for people. These rules help ensure that more people can buy homes without spending too much money.
Housing for All initiative -: The ‘Housing for All’ initiative is a program by the Indian government. It aims to provide affordable housing to everyone in India by a certain year.
