Finance Minister Mr. Arun Jaitely will be presenting the budget for Financial year 2015-2016 on 28th February, According to Mr. Venu Vinod, Managing Director, Cybercity Builders & Developers Pvt Ltd,
the requirement of the real estate industry to spur growth and sales.
“To encourage the customers to purchase a house, we request the government to reduce the interest rate for home loans on par with developed nations, The home loan interest rate is around 5-6% in the developed countries whereas it is more than 10% in India. We request the Government to device a policy or announce interest subvention schemes to reduce the rates for home loans and make it at par with the global levels.
This will reduce the EMI burden and increase the eligibility of the customer, making him purchase the property. The government should also increase the threshold limit for the deduction on interest on housing loans U/S 24(b) to Rs. 2.5 lakhs. This is important as the cost of property has increased significantly and the increase in limits will encourage individuals to invest more in the real estate sector and avail the tax sops.
For developers: The cost of land is a major cost component for any real estate project, but the banks and financial institutions do not provide funds to purchase land. We wish the government directs the banks and financial institutions to help the developers with loans for the purchase of land and subsequently for developing it. Moreover the real estate projects face a large number of taxes (i.e. VAT, Service Tax, stamp duties etc). Which are difficult to calculate and submit. We request the government to introduce a proper tax regime which will simplify the calculation of taxes for the real estate projects and introduce a system of a single challan for submission of all the taxes making it easy for the developers to calculate and submit the Taxes.”
“We hope the government positively considers these requirements of the industry to help improve the customer interest in purchasing a house and in simplifying the processes, increasing the funding to help us contribute positively towards providing ‘ Housing for All’.”