NAREDCO Pushes for Tax Relief to Boost Housing Market

NAREDCO has called for an increase in tax exemptions on home loan interest from Rs 2 lakh to Rs 5 lakh in the upcoming budget. The body also suggests tax incentives to spur affordable housing supply and demand. Key industry figures emphasize personal tax relief and strategic deployment of government land.

Realtors' body NAREDCO on Tuesday recommended increasing the tax exemption on interest for self-occupied property loans from Rs 2 lakh to Rs 5 lakh in the forthcoming budget. This proposal aims to drive housing demand amid escalating property prices and mortgage rates.

Builders have also sought tax incentives to enhance the supply and demand for affordable homes. NAREDCO highlighted that under Section 24 of the Income Tax Act, the current deduction on interest for self-occupied property loans is capped at Rs 2 lakh and proposed raising this limit to alleviate the impact of rising property prices and interest rates.

Furthermore, the organization proposed that provisions taxing notional income on unsold properties after two years should be amended to a five-year period for real estate developers facing weak market conditions. G Hari Babu, President of NAREDCO, asserted that these recommendations could provide critical relief to developers and stimulate housing sector demand. Industry leaders also called for more personal tax relief and strategic use of government land to bolster affordable housing.