By Accommodation Times News Services
Since, Union Budget for the year 2014-15 is coming soon people from various sector are sharing their expectations from the new government. Sachin Sandhir MD, RICS South Asia shares his and his companies expectation from the budget in the sector of housing and home loans. RICS is an organization committed in setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society.
1) RICS believes that affordable housing projects, those catering to lower income group (LIG) and economically weaker sections (EWS) should have tax rebates. To increase the supply of affordable housing, 100% tax rebate should be extended to all affordable housing projects approved under the affordable housing scheme.
2) RICS recommends that to support homebuyers in the affordable category, the limit of priority sector lending should be revised. The home loan limit of Rs 25 lakh should be revised upwards to Rs. 35 lakh under the scheme in a bid to benefit an increased number of home buyers who are currently struggling to buy property due to the price escalations plaguing the sector for long.
3) Providing relief to millions of first time homebuyers, the government had last year announced a sop that gave an additional tax deduction of Rs 1 lakh to persons taking a home loan of up to Rs 25 lakh for the first purchase. But the provision was applicable till 31st March 2014. This is over and above of the limit of Rs 1.5 lakh for tax savings on a loan repayment. This date should be extended to continue promoting housing in the country and being a catalyst to first-time homebuyers. Additionally, the limit of Rs 1.5 lakh should be increased to Rs 3 lakh. Additionally, the limit of Rs 1.5 lakh should be increased to Rs 3 lakh.
4) To bring more transparency in property transactions, the government had also introduced the provision of tax deduction at source (TDS) at a rate of 1% on transfer of immovable property priced Rs 50 lakh or more. RICS believes that the tax deduction should be extended by another year and the TDS should be levied on properties priced Rs 1 crore and above.