The National Real Estate Development Council (NAREDCO) has suggested the finance ministry to come up with a second tranche of the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund with Rs 50,000 corpus in the upcoming Union budget for 2024-2025 fiscal year.
SWAMIH fund has played a critical role in completing many stuck projects, leading to renewed interest among investors, both foreign and domestic, in the Indian real estate sector.
Other budgetary support and relaxations including allowing input tax credit (ITC) under GST and incentives for rental housing in order to achieve the housing-for-all target.
Request to allowing the option of claiming input tax credit by residential project developers with higher GST.
Other taxation related amendments including removal of the Rs 2 lakh limit of interest deduction under Section 24 of IT Act 1961 on housing loans in order to boost housing demand.
Giving MSME status to projects with the required parameters and also allowing priority sector lending for real estate projects.