Call for Housing Reform: CREDAI Pushes for Tax Changes

The Confederation of Real Estate Developers' Associations of India (CREDAI) urges the government to provide a 100% deduction on home loan interest under the Income Tax Act to stimulate housing demand. CREDAI also suggests revising the affordable housing cap and proposes a lower GST rate on housing projects.

The Confederation of Real Estate Developers' Associations of India (CREDAI) has called on the government to introduce a 100% tax deduction on interest paid for home loans under the Income Tax Act. This move, according to CREDAI, would significantly boost demand for affordable and mid-income housing.

In addition, CREDAI has recommended revising the current definition of affordable housing, suggesting an increase in the price cap from Rs 45 lakh to at least Rs 75-80 lakh. Speaking at a press conference, CREDAI President Boman Irani also advocated for imposing a 1% GST on under-construction housing costing up to Rs 75-80 lakh each.

Irani emphasized the potential benefits for homebuyers with a change in the affordable housing definition, asserting that reduced GST on properties could stimulate demand. CREDAI Chairman Manoj Gaur stressed the need for enhancing the ease of doing business by streamlining approval processes for real estate developers, given the 12-18 months typically required for obtaining government clearances.

(With inputs from agencies.)