Union Budget 2024: Real Estate Sector Seeks Tax Relief, Key Expectations Highlighted

As Finance Minister Nirmala Sitharaman gears up to present the Union Budget 2024-25 on July 23, the real estate sector has outlined its key expectations, emphasizing the need for substantial tax relief and the long-awaited industry status. These measures are seen as crucial to invigorating growth and attracting significant investment into the sector.

1. Industry Status: One of the foremost demands from the real estate sector is the recognition of industry status. Granting industry status would provide numerous benefits, including easier access to funding, reduced borrowing costs, and improved regulatory norms. This recognition would also streamline operations and potentially lead to more favorable terms for loans and investments, driving overall growth.

2. Tax Relief: Alongside industry status, the sector is advocating for substantial tax relief to stimulate demand and ease financial pressures. Key areas of focus include:

• GST Reduction: A reduction in the Goods and Services Tax (GST) on under-construction properties would make housing more affordable and boost sales.
• Stamp Duty and Registration Charges: The sector is calling for a reduction in stamp duty and registration charges, which currently add a significant cost to property transactions.
• Income Tax Benefits: Enhanced income tax benefits for homebuyers under sections 80C and 24(b) of the Income Tax Act could incentivize property purchases and investments in real estate.

3. Affordable Housing: The sector also expects continued support for affordable housing initiatives. Enhancing incentives for developers working on affordable housing projects and increasing the allocation for schemes like the Pradhan Mantri Awas Yojana (PMAY) would help address the housing shortage in the country.

4. Regulatory Reforms: Simplifying and standardizing regulations across states could attract more investments and improve the ease of doing business in the real estate sector. This includes faster approval processes for projects and a more transparent regulatory framework.

5. Infrastructure Development: Increased government spending on infrastructure development, such as roads, public transport, and utilities, is also on the sector’s wish list. Improved infrastructure enhances the value of real estate projects and makes them more attractive to buyers and investors.

The real estate sector is optimistic that the Union Budget 2024-25 will address these critical issues, providing the necessary impetus for growth and stability. By granting industry status and implementing tax reforms, the government can significantly boost the sector, contributing to economic growth and housing development across the country.