Interim Budget 2024: From capital gains tax provisions to input tax credit, here's real estate industry's wish list | Mint
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Business News/ Industry / Interim Budget 2024: From capital gains tax provisions to input tax credit, here's real estate industry's wish list
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Interim Budget 2024: From capital gains tax provisions to input tax credit, here's real estate industry's wish list

The complexities involved in asset classification, residential status determination, and computation of acquisition costs should be addressed, say industry representatives.

Interim Budget 2024: The real estate sector's contribution to India's GDP is expected to rise to 13% by 2025 from the current 6-8%. (Photo: Courtesy company website)Premium
Interim Budget 2024: The real estate sector's contribution to India's GDP is expected to rise to 13% by 2025 from the current 6-8%. (Photo: Courtesy company website)

Union Finance Minister Nirmala Sitharaman will present the Interim Budget 2024-25 on February 1. The full Budget for FY25 will be presented after the formation of the new government following the general elections.

Also read: Budget 2024: From investments in skill development to infrastructure, what education sector expects ahead of elections

The Interim Budget will contain details about the estimated receipts and the expenditure of the government until the formation of the new government.

In the financial year 2023-24, the real estate sector proved to be resilient with sales returning to almost 90% of pre-COVID levels in a few cities. It is expected that the real estate sector's contribution to India's GDP will rise to 13 per cent by 2025 from the current 6-8 per cent. Stakeholders look for government initiatives to help the sector maintain the positive trajectory witnessed in 2023. 

Also read: Budget 2024: Government plans incentives for affordable housing ahead of Lok Sabha elections

Affordable housing segment

According to Bonito Designs CEO Amit Parsuramka, the Indian interior design landscape has witnessed significant growth thanks to the ever-growing demand for real estate in the country. "In the upcoming interim Budget, we are optimistic that it will have a positive impact on the home interior and real estate market," Parsuramka said, adding that support for affordable housing and low home loan rates would be a boost. 

“As stakeholders in the home interior market, we look forward to a budget that not only navigates the challenges of the current economic landscape but also paves the way for a resilient and thriving future for the sector," he noted.

Also read: Budget 2024: How the Union Budget is prepared? A quick guide

Industry status in real estate

MAIA Estates Founder and CEO Mayank Ruia is seeking policy initiatives that will benefit homebuyers and real estate developers alike. 

For a robust and sustainable real estate industry, Ruia underscored the simplification of capital gains tax provisions. The complexities involved in asset classification, residential status determination, and computation of acquisition costs should be addressed. A streamlined approach would alleviate the compliance burden on taxpayers, enhance compliance levels and contribute to improved revenue collection,  he observed.

Also read: Union Budget 2024: Riding on Olympics ambitions, experts expect significant boost beyond cricket

The CEO of MAIA Estates also highlighted the need for reinstating input tax credit for real estate, especially in residential projects with higher GST. This tax measure will control property prices and ensure affordability, he suggested.

Also read: Some popular schemes could be expanded in Budget 2024; CY24 will be a volatile year for the market: Kedar Kadam

“A reduction in GST rates on construction materials to single digits is a crucial expectation," Ruia stated.  

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 17 Jan 2024, 02:53 PM IST
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