Our Expectation from Budget – 2021

Ketan Sengupta, CEO of Bengal Peerless Housing Development Company The I.T. exemptions for Housing Loan under section 24 (b) have not been revised for a long time. Raising the limit from 2.00 lakh to 3.00 lakh would help in generating more housing demand. The higher limit for the value of the house for getting exemption under section 80EEA should be revised to 75.00 lakh. Allowable amount of loan also should be increased from 45.00 lakh to 75.00 lakh. Deemed Income- The real estate industry is the second biggest employment generator in our country. COVID 19 pandemic followed by Nationwide lock down made the demand sluggish in real estate sector causing pile up of closing stock. Presently all stock in hand are taxed in the hand of developer after completion of 2 years from the date of CC u/s 23 (5) of the Income tax Act. Industry will be highly benefited if such deeming provision of stock in hand of developer would be waved. Due to increase in steel price, construction cost is going up. GST rate relaxation in steel (% of tax), will contain such adverse price movement.