by THO
Real estate body CREDAI, which is celebrating its 25th foundation day, has said the cap on affordable housing be increased from ₹45 lakh to ₹75- ₹80 lakh and suggested that 1% GST be charged on under construction housing units priced in the range of ₹75 to ₹80 lakh.
“The government should charge 1% GST on under-construction housing properties, costing up to ₹75-80 lakh each, to boost demand for affordable and mid-income housing,” Boman Irani, president, CREDAI told reporters, adding homebuyers will get benefit of lower GST if the affordable housing definition is changed.
Currently, 1% GST is charged on under-construction affordable homes priced up to ₹45 lakh and those priced more than ₹45 lakh are taxed at 5%.
Irani said that the limit on affordable housing was capped at ₹45 lakh way back in 2017. There has been a significant increase in real estate prices since then and the limit needs to be revised upwards to ₹75-80 lakh.
Irani also said that the government may also consider doing away with the price cap on affordable housing altogether and consider only the carpet area of 60 metres in metros and 90 metres in non-metros.
Credai also demanded that the government give a 100% deduction on interest paid on home loans under the Income Tax Act to boost demand for affordable and mid-income housing.
Give 100% deduction on interest paid on home loans to boost housing demand
CREDAI’s president-elect Shekhar Patel said there should be a 100% deduction on interest paid on home loans instead of the current exemption of ₹2 lakh, this in turn will boost housing demand.
CREDAI chairman Manoj Gaur said that the government needs to improve on the ease of doing business and that more than a year goes into just obtaining government approvals to develop real estate projects.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) was set up in 1999 and has more than 13,000 members across cities.
Credai also said that it will upgrade 1,000 government schools across the country in partnership with an NGO to mark the 25th foundation day of the association. It will invest close to ₹11 lakh in each school to provide for smart classrooms, water and sanitation facilities.
It has also decided to construct green buildings and plant trees to create an urban forest.
Irani said that the body will also skill close to 5 lakh construction workers across the country.
CREDAI was set up in 1999 and has over 13,000 members from across the country.
