Pre-Budget expectation 2015-16 by Mr. Nimesh Bhandari, Co- Founder & CEO of Realtycompass.com
We expect the government to boost the real estate sector by giving higher tax benefit to people. As of now, the relief of principal payment of home loan is part of Section 80 CC which is not enough, even though it was raised to 1.5L under last budget. For a loan of 50L the yearly principal payment works out to be roughly 2L Rs. Given that the person also invests in other saving instruments like LIC etc., the limit for the home loan borrowers should be increased to 2.5L.
Also to re-invigorate the real estate cycle, people who need to sell their current house and want to move to a bigger house need to be incentivized. One way to do that is to announce a holiday on short-term capital gains tax for one year provided people sell their house and buy a new one within 1 year. This measure will ensure that need based second time home buyers are moving to bigger house, ensuring that there is ample supply at attractive price available for first time home buyers.
