India’s real-estate sector is experiencing a fiscal slowdown from the last few years and the Covid-19 pandemic influenced lockdown has worsened the situation by hitting the industry hard.
Previously, the government had taken several steps to boost the realty sector but more efforts need to be put in for reviving the ailing sector.
The industry has set high hopes from this year’s budget. Developers want the Budget 2021 to address the concern of making cheaper land available in main cities for the development of affordable housing. The amount of fund allocation should be doubled for Pradhan Mantri Awas Yojana. It would enable more people to fulfil the dream of owning a home and the Government to achieve the target of “Housing for All” by 2022.
In order to push housing demands, the government should consider lowering the tax burden that would put sufficient money in people’s hands and also contemplate to offer an additional tax deduction on the purchase of a second house. This would boost demand and overall growth in the GDP by increasing consumption. They have urged the Finance Minister Nirmala Sitharaman to pay attention to the Input Tax Credit as well, else it would directly affect the Affordable Housing by making the houses more expensive.
Builders are looking forward for the industry status and expecting single window clearance to ease the business operations and in case if it is not possible as of now, then the permission granting authorities must be brought under the control of RERA.
Furthermore, they want the government to revise GST for availing construction materials such as cement at affordable prices. The income tax deduction must also increase up to 4 lakh under section 24.
The list of expectations from the government is very long and all eyes are on the Budget that will be presented by FM Sitharaman on Feb 1, 2021.