‘Budget 2023-24 offers no waiver or reduction of GST on raw materials’

There should have been a separate deduction for the repayment of the principal amount of home loan: 

MP, 1 Feb 2023 : Union Budget 2023-24 did not mention any sops on increasing the limit of home loan interest deduction on income tax returns and neither did it offer any waivers or reduction of GST on raw materials like cement, steel that would have boosted the real estate segment, said Sushil Mohta, Chairman Merlin Group and president CREDAI, West Bengal. 

He said that the real estate sector requested for the tax benefit on home loan interest and principal repayment, but the Budget did not mention any sops on increasing the limit of home loan interest deduction on income tax returns. 

There should have been a separate deduction for the repayment of the principal amount of the home loan, which is currently clubbed under section 80C, he added and pointed out that at present, the ceiling of the deduction for principal repayment of housing loan is Rs 1,50,000 along with other tax saving instruments. 

“However there was no announcement of the raising of the overall ceiling limits of section 80C to Rs 5 lakh which could have spurred investments” he observed. Mohta further pointed out that the Budget also did not reduce capital gain tax and did not introduce new lending avenues for developers. 

“We expected waivers or reduction of GST on raw materials like cement, steel that would have boosted the real estate segment. Moreover, the real estate sector, the second largest employer in India, did not receive the industry status which is long overdue” he said. 

On the brighter side, he pointed out, “PM Awas Yojana outlay has been increased by 66 per cent to Rs 79000 crore for 2024 and this will boost the real estate sector. 

The Budget also has encouraged urban planning reform with housing for police personnel and setting up of libraries for children. 

The tax benefit to startups may see an uptick in growth in the office segment in real estate as startups are ramping up their physical presence across the country.” 

He added that the Budget provided some reliefs to the middle income group salaried classes that may impact the growth of affordable housing segment or rental residential segment, he opined. 

https://www.millenniumpost.in/bengla/budget-2023-24-offers-no-waiver-or-reduction-of-gst-on-raw-materials-507205