Union Budget 2023: Due to the overwhelming demand, 2022 and 2023 have been wonderful years for the real estate industry. Whereas the rising cost of homes has put a strain on the wallets of new homebuyers, those who have previously taken out a home loan have seen their budgets destroyed by the high EMI. Added tax burden there. All prospective homeowners now hope that the Modi administration will ease their financial burdens in the final complete budget of the second term.
Relief for homebuyers!
On February 1, 2023, Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) will announce the budget, and everyone from homebuyers to the real estate industry is pleading with her to do away with high EMIs and lower taxes. The chairman and CEO of CBRE for India, South East Asia, the Middle East, and Africa, Anshuman Magazine, has made a number of recommendations for how to allocate funds for real estate. which has this form.
The limit of tax exemption allowed on the principal amount of a house loan
should be raised from Rs. 1.50 lakh to Rs. 4 lakh under section 80C of the Income Tax Act. There has also been a call to decouple 80C from the tax break offered on the house loan’s principle. because, in addition to the principal amount of the home loan, investments in PPF, EPF, and ULIP are also exempt from tax up to Rs. 1.50 lakh under 80C.
A demand has been made to raise the yearly deduction cap for house loan interest from Rs 2 lakh to Rs 4 lakh in order to attract borrowers of home loans. This will encourage more individuals to purchase homes.
Anshuman Magazine claims that real estate made strides in 2022 and that this development is anticipated to continue in 2023. The Indian economy’s base is stronger than that of other economies. Due to domestic demand and private sector investment, economic activity will continue to be robust even if progress is rather gradual.
Interest payments up to Rs. 5 lakhs are tax-free.
The Union Budget, which will be presented on February 1, 2023, should enhance the tax deduction ceiling on home loans from the current Rs 2 lakh, according to the real estate builders’ association CREDAI. 50,000 to Rs. According to CREDAI, crippling inflation, a constant rise in the repo rate, and then high EMIs, all had an impact on people’s budgets and the amount of interest that can be exempt from taxes on house loans. The finance minister has also been urged by the builders to broaden the definition of affordable housing and lower the long-term capital gains tax (LTCG Tax) on real estate.
Modifications to the cost of housing
In order to broaden the definition of affordable housing, CREDAI has demanded that homes be valued at Rs. 75 lakh. In non-metropolitan areas and Rs. 1.50 crore in metropolitan areas be included. Additionally, non-metropolitan cities should expand the size of affordable homes to 90 and 120 meters, respectively. According to CREDAI, this reform is required and will help homebuyers given the rise in the cost of developing a home and the current circumstances.
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