Budget 2021 is expected to lay key emphasis on the real estate sector.
Home buyers and developers are looking for a higher tax relief to spur demand. The cap of Rs 2 lakh on housing loan interest under income tax deductions should be extended up to Rs 5 lakh.
Experts feel the government should relax the fundraising norms and ensure the implementation of alternate investment funds to ensure enough liquidity for the sector. More importantly, the government should incentivise the private sector to invest in affordable housing.
Niranjan Hiranandani, national president, NAREDCO, said: “To promote rental housing the deduction of 30 per cent from the annual rental income (for purpose of maintenance) should be increased to 50 per cent.”