New Delhi | Jagran Business Desk: Finance Minister Nirmala Sitharaman will present the Union Budget for the fiscal year 2021-22 on February 1 in the parliament with focus on steering the pandemic-battered economic and pushing growth. Homebuyers and the real-estate sector expects the government to announce measures to trigger fresh demand in the housing segment, such as incentives for rental housing and tax benefits.

The homebuyers hope that the government would augment the tax deduction limit on home loan interest. Increasing the limit under section 24 (b) of the IT Act from existing Rs 2 lakh for self-occupied property will encourage citizens to invest in real estate, and thereby boost the sector reeling under the impact of the coronavirus pandemic. 

In addition to this, the homebuyers expect the government to take measures to separate the deduction on the repayment of principal amount of home loan with other deductions under Section 80C of the IT act, since the qualifying amount of Rs 1.50 lakh is usually already exhausted. 

The homebuyers would be expecting the government to give industry status to the real-estate. The move will help developers get financial support from banks and financial institutions at reasonable interest rates easily, and, years down the line, the benefit would pass onto the homebuyers.  

The real-estate sector was hit hard by lockdowns imposed to curb the spread of the pandemic. Later, the exodus of migrant labourers to their hometown impacted execution of projects. Offering industry status to the sector would immensely benefit the developers struggling to complete the promised projects on time. Lastly, the homebuyers expect that the government will announce a stimulous package to increase the purchasing power of the common man and create demand in the market. 

The Budget presentation will begin at 11 am on February 1 in the Lok Sabha. 

Posted By: Lakshay Raja