Real estate body CREDAI has proposed a higher deduction threshold for home loan interest repayment from Rs. 2 lakh to Rs. 5 lakh, citing the steady rise in interest rates from May onwards. Rates have jumped up by close 2 percentage points over the last 7 months, touching 8.5%, with the repo rate being hiked by 225 basis points in this period.<\/p>\n\n\n\n
CREDAI has stated that home loan EMIs have increased due to this hike, mentioning how there is a pressing need to enhance the deduction limit to Rs. 5 lakh, which will give more income in the hands of middle-income buyers while also drawing more people towards home ownership. CREDAI has recommended this measure as a means of boosting the realty sector, which is one of the biggest contributors to the country\u2019s GDP and sustains innumerable livelihoods in the country.<\/p>\n\n\n\n
CREDAI has also proposed a revised cap of the price limit for qualifying as affordable housing, from Rs. 45 lakh earlier. It has also proposed 100% exemption of rental income till Rs. 20 lakh annually, which will encourage more investments in rental units. CREDAI is the representative of 13,000+ developers throughout 21 States and 221 city chapters. More tax sops are needed according to experts, particularly in the mid-income and affordable housing categories. Some experts also bat for more institutional support measures for projects which are stalled, along with a further push towards the affordable housing category.<\/p>\n\n\n\n