There is an urgent need for encouraging housing and real estate sector to revive GDP growth, also to fulfill our PM’S dream for housing for all 2022. Towards achieving this the Centre must immediately take proactive steps in encouraging real estate sector in general and the housing sector.
The roll back of GST would bring in tax neutrality as promised by the Government, between pre-GST and post-GST periods.
This has been a big dampener for under construction projects, whose sales has drastically dipped since under 18% GST.
Construction and property development projects shall be taxed at the lowest rate at 5 % only with input credit, if Governments wants to spare growth, which will have a multiplying effect on others as well, as housing is an essential commodity and construction of infrastructure is, fundamental for development of the country.
Also bring development authorities, local bodies and financial institutions under the ambit of RERA to ensure hassle-free time-bound approvals. We need an online single window approval process for construction permits as service connections such as electricity, water connection and sewage are getting affected.
It would help to issue no objection certificates and clearances online automatically upon application to the single window agency and even loan sanctions for housing and construction project loans. Issue of completion certificates must be delegated to architects and licensed surveyors.
Entire interest paid on housing loans and enhanced deduction eligibility for up to 2 lakh, for repayment of loans. Real estate sector and all housing projects could do with infrastructure status.
Voice on the street
DT Next gets talking to citizens and finds what he/she expects from the Union Budget to be presented on February 1
I expect the Centre to spell out its stance clearly when it comes to cryptocurrency. I am unhappy with the digital strides it took over the past few years. The common man spends too much time dealing with processes. The Aadhaar card is yet another area of concern. The intentions seem to be fair as far as the reformist agenda is concerned, but what about the ground reality? When will the middle class be spared from the ordeals that they keep facing. Even senior citizens are finding it extremely difficult to cope with bizarre compliance mechanisms. I hope the budget will offer a clear roadmap of the reforms undertaken and of course some incentives to boost the sagging morale of the people!
— Suhas PK, Finance Professional