Financial benefit provided under Prime Minister Awas Yojana (PMAY) and Credit Linked Subsidy Scheme (CLSS) should be extended to the mid-income group, said Rajeev Talwar, former President of PHDCCI.
Talking to ANI, Talwar said that the Government's focus is 'Housing for All' and India needs to construct 8-10 Crore affordable houses in the next 20 years. To provide every Indian an affordable home the government should extend the financial benefit of the PMAY and CLSS scheme to the middle income group (MIG) to encourage housing consumption.
He also said the government should increase the standard deduction to 50 per cent from 30 per cent as this will result in earning a better rental yield in residential real estate.
Talwar further said, "We saw how favourable government policies such as stamp duty cuts, low-interest rates on home loans, and infrastructure development supported the sector. We expect that the Union Budget will announce customer-friendly steps such as tax reliefs to homebuyers to encourage and empower them."
Talwar urged the Government to bring in provisions to promote home-ownership and affordable and rental housing, and also support the development firms.
Another expectation is to extend the tax relief to the homebuyers by raising the tax deduction limit of home loans from Rs 2 lakh per annum to Rs 5 lakh per annum. This would have an encouraging impact on homebuyers, especially first-time buyers across the nation, he said.
Talwar said that the reduction of the stamp duty in Maharashtra has reaped good results. If this can be mirrored in other states too, fence-sitters would be quick to take the plunge, and this would further boost real estate.
( With inputs from ANI )
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