The real estate sector has high expectations from the Union Budget this time. This sector has been demanding help from the government for a long time. He hopes that on February 1, Finance Minister Nirmala Sitharaman will announce the granting of industry status to the real estate sector. The real estate sector was hardest hit by the Covid pandemic. Now this sector has come out of that crisis. If the government announces tax incentives and other assistance for this sector, this sector can achieve very rapid growth.
Tax deduction on home loan interest should be increased
People having knowledge of the real estate sector say that the government should first increase the deduction on home loan interest. After that the tax credit rules of GST inputs should be changed. The government should introduce easy single window clearance system for the real estate sector. With this, this sector will grow rapidly. To increase the growth of the economy, the growth of the real estate sector will have to be increased. The reason for this is that steel, cement, paint, electrical and lighting companies also benefit from the rapid growth of this sector.
Demand for houses will increase by increasing tax benefits
ANAROCK Group Chairman Anuj Puri said that there was a slowdown in activity in the real estate sector in the second half of the year 2024. Therefore, measures to increase the growth of this sector are very important. He said that the real estate sector believes that the government should definitely fulfill its demand for industry status this time. Apart from this, if tax benefits on home loans are increased for home buyers, it will have a positive impact on this sector.
Real estate companies say that the government should increase the deduction on home loan interest to at least Rs 5 lakh. Currently, deduction of up to Rs 2 lakh is available on home loan interest. Apart from this, REIT investors should get the benefit of deduction under Section 80C of Income Tax. Also, there should be a change in the rules of GST input tax credit. This will increase people’s interest in buying houses.
Separate category for tax benefit on principal
Currently two types of tax benefits are available on home loan. Under Section 24B of the Income Tax Act, a maximum deduction of Rs 2 lakh is allowed to be claimed on home loan interest in a financial year. Apart from this, deduction is also allowed to be claimed on the principal of home loan under Section 80C of the Income Tax Act. This is up to the maximum limit of section 80C. Tax experts say that if the Finance Minister increases the deduction of Section 24B to Rs 5 lakh and creates a separate category for deduction on the principal of home loan, then it will give wings to the real estate sector.
If these four demands are fulfilled, the glory of the real estate sector will increase.
If the Finance Minister announces industry status for the real estate sector on February 1, changes in the rules of GST input tax credit, deduction of Rs 5 lakh under section 24B and a separate category of deduction on the principal of home loan, then this will affect the real estate companies. There may be a rise in the shares of. The performance of stocks of companies like DLF, Phoenix Mills, Oberoi Realty, Godrej Properties has been mixed.
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These realty stocks can get wings
DLF stock has given negative returns of 12 percent in one year. Shares of Phoenix Mills have given returns of about 23 percent in the last one year. Shares of Oberoi Realty have given a return of 28 percent during this period. Shares of Godrej Properties have given negative returns of about 3 percent.