Union Budget 2023 Disappoints Homebuyers
The government has increased the outlay of PMAY by 66 percent by allocating Rs 79,000 crore for affordable housing, this will not help the majority of those who want to buy a house in a city like Mumbai. The definition of affordable housing is below Rs 50 lakh. And the benefit of only 1 percent GST instead of 5 percent while purchasing a house is available only on houses below the Rs 50 lakh limit. However, in metros like Mumbai, there is nothing in Rs 50 lakh. The government should have considered increasing the affordability limit of extending the 4 percent GST waiver to homebuyers. Finance Minister Nirmala Sitharaman has raised the personal income tax rebate limit, doled out sops on small savings. The personal income tax rebate limit has been increased to Rs 7 lakh from April 1 under the new tax regime, from the previous Rs 5 lakh limit. However, everyone was looking forward to an increase in the exemption on housing loans. However, as the government’s emphasis is to encourage citizens to shift to the new tax regime, I presume, no additional incentives have been announced. The increase in interest rates on housing loans could be a dampener for the real estate industry, which is yet to recover fully.
Tags : government PMAY affordable housing house Mumbai