From increasing the tax holidays to additional liquidity support to stalled projects, real estate developers have numerous expectations from the Fiscal Budget 2021.
The year 2020 was a challenging year for the real estate industry, except the last quarter that witnessed some recovery due to the stamp duty reduction announced by the Maharashtra Government. Therefore, to revitalize the sector, we expect the Government to provide incentives for end-users and increase the residential affordability in Budget 2021 so that a large number of people can purchase their dream abode. Revising the tax exemption limit for individuals under Section 24 from Rs 2 lakh to Rs 5 lakh will also prove to be a significant step in this direction.
The increase in the tax holiday available to developers under Section 80IBA to boost the affordable housing construction is another critical expectation along with the adequate liquidity support to fund the stalled housing projects. Besides, the home loan interest rates must also be brought down to encourage real estate purchases.
