Budget 2021: After a few days, Finance Minister Nirmala Sitharaman will present the country’s general budget.
Everyone, from every special to the common man, hopes that there will be something special for them in the budget. In the budget, the salaried class is waiting for more income tax exemption. The Federation of Indian Chambers of Commerce and Industry (FICCI) has sought to further increase the tax exemption to the salaried class in income tax keeping the real estate sector in mind.
‘Home loan interest deduction to be 1 crore’
The Federation of Indian Chambers of Commerce and Industry (FICCI) has demanded the government to abolish the tax relief limit on home loan interest under Section 24 (b) of the Income Tax Act, or it can be reduced to Rs 2 lakh. Be increased from Rs. One crore to Rs.
’80C limit should be 3 lakhs’
Apart from this, FICCI has also suggested that the tax exemption on home loan repayment should not be included with section 80C of income tax. The FICCI has demanded that this deduction be exempted from the tax exemption of Rs 1.5 lakh given under 80C, another way is to increase the limit of section 80C from Rs 1.5 lakh to Rs 3 lakh.
‘People will invest in housing with exemption’
FICCI’s reasoning behind this suggestion is that most people buy houses by taking housing loans, and repay this loan with their hard earned money. This deduction will increase people’s purchasing power, which will give a boost to the real estate sector and also benefit the economy.
‘Remove carpet area limit’
At present, the limit of carpet area for a shop and commercial space cannot be more than 3 percent of the total carpet area. Also, a project is considered complete only when that entire project does not get the completion certificate from the concerned authority under Section 80-IBA. FICCI suggests that this limit should be simplified. Also, if a project is being completed in several phases in the project, then the condition of completion period of 5 years after the start of each phase should be relaxed.
‘Completion period should be easy’
FICCI argues that when an affordable housing project is built, many buildings are constructed on a very large land. It is very difficult to complete the entire project in 5 years. Usually such projects are divided into several stages. In such a situation, the limit for completing every phase of the project should be 5 years. Also, this period of 5 years should start after getting all the approvals for that phase.