Increase tax exemption limit to Rs 5 lakh

• Naredco request to Centre

Builders are urging the central government to include measures in the budget, which will be presented in the Lok Sabha on the 23rd of this month, to support the real estate sector. They specifically request certain exemptions to encourage the purchase and construction of affordable housing. The National Real Estate Development Council (NAREDCO) has appealed to increase the tax exemption limit on interest paid for home loans from Rs 2 lakh to Rs 5 lakh. They believe this increase is necessary due to rising property prices and interest rates.

Currently, the exemption limit stands at Rs 2 lakh. NAREDCO has also requested that the period for calculating nominal income on properties treated as stock-in-trade be extended from the existing two years to five years. They have suggested that when market conditions are favourable, real estate developers would maintain their inventory, and therefore, flexibility in this regard should be provided. NAREDCO President G. Haribabu stated that implementing these recommendations would not only provide relief to developers but also boost demand in the housing sector.