The construction sector pinned hopes on the Union budget 2023 in the light of prevailing economic slowdown, Covid threat looming large, dip in the sales of housing units, mounting debts of builders and interest burden on the loans. Builders seek industry status to construction sector and tax exemptions and rationalization of taxes, subsidies among other things. They seek approval to real estate projects under the single-window mechanism. Under the credit-linked scheme, the builders seek incentives, subsidies and enlarge the SWAMIIH fund from Rs 5000 crore to Rs 50,000 crore.
- The income tax rate of firms and LLPs should be kept at par with the corporation tax rates-around 25 percent.
- State’s rental housing policy should be finalized to achieve the goal of housing for all
- Impose 10 percent tax on long term capital gains. Also, the holding period of house property to qualify as long term capital asset should be reduced from 24-36 months to 12 months.
- Principal deduction limit on home loans should be increased from Rs.1.5 lakh to Rs.4 lakh.
- Capital gains tax rate should be reduced from 20 percent.
- Limit of Rs 2 crore imposed on capital gains for investment in two properties should be removed.
- Higher tax exemption should be given to home buyers. The exemption limit for interest payment on home loans should be increased from Rs.2 lakh to Rs.5 lakh per annum.
- Government should rationalize GST for construction materials like steel, cement and tiles.
- Tax concession on both principal and interest paid on home loans should be increased.
- Single window system should be introduced to facilitate quick approval of projects.
