Chennai Realtors Push for Enhanced Tax Exemption to Revitalize Market
Chennai's real estate sector is eagerly awaiting the Union government's decision to increase the income tax exemption for housing loans. Currently set at Rs 1.5 lakh per annum, industry experts are advocating for a raise to up to Rs 3 lakh.
Market Expectations
- Boost to Real Estate Market: Realtors, including Siva Krishnan, Head of Residential Services (Chennai) at Jones Lang LaSalle India, anticipate that enhancing the income tax exemption limit will significantly enhance the real estate market, which showed signs of recovery after a struggling last financial year.
- Expert Insights:
'The market, which was struggling last financial year, has picked up and we expect the government to enhance the income tax exemption limit.' - Siva Krishnan, Jones Lang LaSalle India
CREDAI's Recommendations for Realty Sector Growth
The Confederation of Real Estate Developers’ Associations of India (CREDAI) has outlined key modifications to the realty sector and housing policy to address the substantial demand for 26 million homes.
- Streamlining Approvals:
- Single-Window Clearance: Provision for rapid project approvals to mitigate inordinate delays.
- Affordable Housing:
- Extended Incentives: Continued growth in the affordable housing sector through incentives for bank borrowings for home purchases.
- Taxation:
- Reduced Holding Period: Advocating for a reduction in the 36-month holding period to 12 months.
'Some of the measures like creation of Special Residential Zones can help. Affordable housing sector should continue to grow based on the incentive given for borrowings from banks for homes.' - T Chitty Babu, CREDAI President