Business News | NAREDCO Urges Government to Increase Home Loan Tax Benefits and Restore Settlement Commission | LatestLY
NAREDCO has proposed increasing home loan tax benefits and reinstating the Income Tax Settlement Commission to revitalize the real estate sector.Summary
The National Real Estate Development Council (NAREDCO) has submitted recommendations to the Union Ministry of Finance to boost the real estate sector and homebuyer demand. Key proposals include raising the interest deduction limit on home loans from Rs 2 lakh to Rs 5 lakh or more, allowing deductions from the year capital is borrowed, and removing the five-year project completion deadline for claiming deductions. NAREDCO President Parveen Jain stated that rationalizing taxation will stimulate demand and address the housing shortage.
Furthermore, NAREDCO advocates for the reinstatement of the Income Tax Settlement Commission, discontinued in 2021, to resolve disputes and foster investor confidence, as emphasized by Chairman Dr. Niranjan Hiranandani. He connected this reform to India’s goal of becoming a developed economy by 2047.
Additional recommendations include reducing tax rates for non-corporate entities to 25 percent, capping individual tax rates at 30 percent, and removing notification requirements for rental housing projects to incentivize developers, all supporting the “Housing For All” vision.
(Source：Latestly)