representative image apex body of realtors credai On Monday asked the government to give 100 percent rebate on interest paid on home loans. income tax An Act to Promote Demand for Affordable and Moderate Income Housing. CREDAI, which is celebrating its 25th foundation day, also demanded that the definition of affordable housing should be revised, increasing the limit from Rs 45 lakh to at least Rs 75-80 lakh.
CREDAI Chairman was addressing a press conference here Boman Irani Suggested that the government should impose 1 per cent GST on under-construction residential properties costing up to Rs 75-80 lakh to boost demand for affordable and middle-income housing.
Currently, there is 1 percent GST on under-construction affordable houses priced up to Rs 45 lakh.
Under-construction houses costing more than Rs 45 lakh per unit attract 5 percent GST. Developers cannot avail input tax credit.
He said, “The definition of affordable housing came out in 2017, setting a limit of Rs 45 lakh. If we consider the annual inflation since 2017, this limit needs to be revised to Rs 75-80 lakh.” ”
Irani said if the definition of affordable housing is changed then potential home buyers will get the benefit of lower GST.
The CREDAI Chairman said the government should consider another option and completely remove the price cap in the definition of affordable housing and the only criteria should be the existing carpet area of 60 m in metros and 90 m in non-metro cities.
Irani also stressed on “putting more money into the hands of people by reducing taxes”.
CREDAI Chairman-elect Shekhar Patel said there should be a 100 per cent deduction on interest paid on home loans instead of the current exemption of Rs 2 lakh.
Irani said that 100 percent reduction will lead to a massive increase in demand.
Under Section 24 of the Income Tax Act, exemption on interest on loan for self-occupied property is limited to Rs 2 lakh.
CREDAI Chairman -Manoj Gaur He said builders take 12-18 months to obtain various government approvals to develop real estate projects.
“There is a need to improve the ease of doing business,” he said.
Established in 1999, Real Estate Developers Confederation‘Association of India (CREDAI) has more than 13,000 members from across the country.
