The Budget 2019 must focus on incentivising homebuyers by solving their problems faced due to factors like uncertainty over project approvals, construction delays, and completion hassles, reported Financial Express.
Income deduction towards interest paid on a home loan on the self-occupied property, which can be currently claimed to Rs 2 Lakh per annum. The report cites that the limit is quite low, and the limit could be revised to Rs 4 lakh per annum.
Further, the study states that deduction on home loan interest paid towards an under-construction property would help in tax savings and would generate investments in new houses.
Although in the interim budget, the Modi government provided a number of tax sops to the homebuyers for encouraging more investment in the property sector, the report suggests that there is more to be covered to relieve the homebuyers.
Earlier this month, a homebuyers' body, Forum for People's Collective Efforts (FPCE), recommended to the finance minister that the upcoming budget must create 'stress funds' to Rs 10,000 crore to complete stalled real estate properties and provide relief to people who have booked these properties. In order to do so, the association asked the Centre to amend the Insolvency and Bankruptcy code, 2016, and provide homebuyers to be made 'primary secured creditors'