Real estate sector hopes Union Budget 2022-23 to help sustain growth momentum
For the Indian real estate sector, the year 2020 was a testing year but it made a strong comeback in 2021. The sector has big expectations from the Union Budget 2022-23 which is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1.
“Growth in the real estate sector is essential for the growth of the economy. We are hoping that the government will introduce deep policy reforms that will help in accelerating the growth in real estate, especially at this juncture,” said Aditya Kushwaha, CEO and Director, Axis Ecorp.
Kushwaha pointed out that the COVID-19 pandemic has played a significant role in changing the perception of home-ownership for all, especially for the NRIs.
In the last couple of years, the demand from the NRI segment has risen sharply. In order to encourage this segment, we propose that the government should consider revising the applicable tax deducted at source (TDS) on property transactions for NRIs, he said. “This will not only boost investment in the sector but also help our country to build its forex reserves. There has been an uptick in rental housing as people continue to work from anywhere (WFA). To further promote the rental segment, we propose that the government should offer taxation benefits for tenants which could include enhancement in HRA Tax Exemption,” Kushwaha added.