Increased Deduction Limits on Home Loan Interest: The current limits on deductions for interest paid on home loans could be increased. This would reduce the taxable income of home buyers, making home ownership more affordable.
Revision of Section 80C Limits: The Union Budget could propose a revision in Section 80C of the Income Tax Act, specifically increasing the limit for deduction in respect of home loan principal repayment, which currently is part of the overall limit of INR 1.5 lakh.
Subsidies and Grants for First-Time Home Buyers: The budget could introduce new subsidies or enhance existing ones for first-time home buyers, making it financially easier for them to purchase homes.
GST Reduction on Construction Materials: Reducing the GST on construction materials would lower the cost of homes, as developers would pass on the benefits to buyers.
Incentives for Developers to Build Affordable Housing: Offering tax breaks or other incentives to developers who build affordable housing could increase the supply of lower-cost homes in the market.
Enhanced Credit Availability: Measures to enhance credit availability, particularly for low and middle-income groups, through schemes or partnerships with financial institutions could be considered.
Stamp Duty and Registration Fee Concessions: The budget could recommend that states reduce stamp duty and registration fees, which make up a significant portion of the acquisition cost.
Rental Housing Schemes: Introducing or expanding rental housing schemes would benefit those who cannot afford to buy homes and would also boost the real estate sector.
Long Term Capital Gains (LTCG) Tax Relief: The budget could propose changes in LTCG tax structure on property sales, such as extending the period for tax exemption on reinvestment or reducing the tax rate.
Infrastructure Development in Emerging Areas: Allocating funds for infrastructure development in new areas can increase the attractiveness of these locations for home buyers, leading to a more balanced real estate development.
Clarity and Support for REITs: Providing clarity and incentives for Real Estate Investment Trusts (REITs) in the budget can attract more investments into the real estate sector, indirectly benefiting home buyers through increased development.
Special Provisions for Senior Citizens: Introducing special provisions or additional benefits for senior citizens looking to buy homes, like lower interest rates or additional tax deductions.
