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Tax Reliefs and Real Estate: What Homebuyers Expect in Budget 2025

  • userBy Admin
  • Dosti blog dateFebruary 18, 2025
  • Dosti Blog category

The Union Budget is a highly anticipated event, especially for homebuyers and real estate investors. Each year, potential buyers and industry stakeholders look forward to announcements that could make property ownership more accessible and affordable. As the next budget approaches, expectations are high for measures that could significantly impact the real estate sector. This article explores what homebuyers hope to see and how Tharwani Realty aligns with these aspirations.

 

The Current Tax Landscape for Homebuyers

 

Under the existing tax framework, homebuyers can avail several benefits:

 

  • Section 80C Deduction: Homebuyers can claim a deduction of up to ₹1.5 lakh on the principal repayment of a home loan. This section also covers other eligible investments and expenses like life insurance premiums, PPF contributions, and children’s tuition fees.
  • Section 24(b): A deduction of up to ₹2 lakh is available on the interest paid on a home loan for self-occupied property. For let-out properties, the entire interest amount is deductible, making it a significant benefit for investors.

 

While these provisions offer some relief, rising property prices and fluctuating home loan interest rates have increased the need for more substantial tax benefits.

 

What Homebuyers Expect in the Upcoming Budget

 

Homebuyers and industry experts have expressed several key expectations for the upcoming budget:

 

  • Higher Tax Deductions on Home Loans: One of the most anticipated changes is an increase in the deduction limits under Section 80C and Section 24(b). Suggestions include raising the limit for principal repayment and interest paid on home loans to better reflect current market realities.
  • Tax Incentives for Affordable Housing: Incentives for affordable housing projects are also highly anticipated. This could involve expanding existing schemes like PMAY (Pradhan Mantri Awas Yojana) or introducing new ones to encourage investment in this crucial segment and meet the growing demand for affordable homes.
  • Reduction in GST Rates: The current GST rates on under-construction properties are a point of concern. Lowering GST rates, particularly for affordable housing segments, could significantly impact affordability. GST is generally 1% for affordable housing and 5% for other under-construction properties. The definition of "affordable housing" varies by location and property value, often considering factors like carpet area and property cost.
  • Tax Relief on Stamp Duty and Registration Charges: Homebuyers hope for deductions for stamp duty and registration fees, which currently fall outside specific tax benefit categories, although they can be included within the overall Section 80C limit in the year of payment. A separate deduction would provide more immediate financial relief.
  • Focus on Green Homes: With a growing emphasis on sustainability, tax incentives for eco-friendly homes and buildings are expected. This could include deductions for energy-efficient construction, solar installations, or other green building technologies, promoting environmentally responsible development.

 

How Tharwani Realty Meets Market Expectations

 

Tharwani Realty aims to address homebuyer needs through:

 

  • Affordable Luxury: Their projects aim to balance luxury and affordability, providing value for investment.
  • Prime Locations: Developments in strategic areas offer connectivity and convenience.
  • Eco-Friendly Initiatives: The brand emphasizes sustainable construction practices and incorporates green technologies.
  • Transparency and Trust: They focus on delivering on promises and ensuring secure investments.

 

Why Tax Reliefs Matter for the Real Estate Sector

 

The real estate sector is a significant contributor to India's economy. Tax incentives can:

  • Boost housing affordability, making homeownership more attainable for a wider range of people.
  • Encourage investment in the sector, stimulating construction activity and creating jobs.
  • Drive demand for under-construction and affordable housing, addressing housing shortages and promoting inclusive growth.
  • Promote sustainable development practices, encouraging environmentally conscious building practices.

 

Conclusion

As the upcoming Union Budget approaches, homebuyers and industry stakeholders anticipate measures that will make property ownership more accessible. From potential increases in tax deductions to incentives for affordable and green housing, the hopes are aimed at propelling the real estate sector forward.

Tharwani Realty states its commitment to aligning its offerings with market needs. With a focus on trust and innovation, they aim to be a preferred choice for homebuyers.

 

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