No tax relief for home buyers stuck in stalled projects: Apex body FPCE
New Delhi: Home buyers association FPCE on Monday said the Budget has not provided any major tax incentives for flat owners stuck in stalled housing projects as well as prospective customers to revive confidence in the property market.
There was no relief for existing home buyers who are stuck in stalled projects and are paying both rent and EMI on their home loans, said Abhay Upadhyay, president of Forum for People's Collective Efforts (FPCE), earlier known as Fight For RERA.
"Real estate sector is yet to reach anywhere near its past high despite all tax sops provided in previous year's Budget. This is partly because tax sops have failed to infuse confidence in the sector and also because many of the tax benefits provided remains on paper only," he said.
There was expectations that the Budget would separately provide deduction for principal repayment on home loan, which currently is part of Rs 1.5 lakh allowed under Section 80C, Upadhyay said.
"To infuse confidence in the sector, it was also expected that some tax relief would be provided to those home buyers of delayed projects who are paying both EMI and rent. Unfortunately, no such concessions were announced in the Budget 2020 which may further delay much needed recovery in the sector," he said.
Last year, the Centre had created a Rs 25,000 crore fund for completion of stalled housing projects, comprising of about 4.5 lakh units. FPCE had been demanding creation of Rs 10,000 crore stress fund.
Real estate developers' apex bodies CREDAI and Naredco have also expressed disappointment over the Budget as their demand of one-time restructuring of builders' loan was not met.
However, many realty firms welcomed the government's decision to extend tax incentives provided for increasing demand and supply for affordable housing segment.