Buyers enjoy tax relief only after the possession of the property. This should change and the buyers should be able to enjoy the tax benefits from the date of booking rather than the date of possession. Over the years the government has introduced tax relaxations in mutual funds, stocks, debt funds but nothing such has been given to the real estate sector. Given that most people like to invest in the real estate as a safer and better investment area, benefits and tax relaxations should be introduced in this market as well.
The real estate sector hasn’t given many benefits in past two years and has seen an all time low in the return and investment. With RERA on sight, it is expected that there will be a firmer grip and rules for the developers and the Grade B and C developers will have more buyers in the economic range. Though, the reduction in the home loan rates has been a good news to the buyers as they can now buy the property of their choice with reduced interest rates and prices.
Certain challenges are faced by the investors in the real estate market and it will be wonderful if the government could work and come up with rules to help these areas.
NRIs face a lot of challenges while investing in India. The government should allow the banks and chartered accountants to compute their taxation. This will boost the investment by the NRIs in Indian real estate.
There should be more leniencies for the investors to put the revenue from the commercial real estate market to residential market and vice versa. Investors should also be allowed to invest in both residential and commercial market simultaneously from the revenue acquired from the sale of a particular property.
There should be 100 percent tax deduction in the rent revenue. This will help in regulating the prices in the real estate market. The government should further provide benefits for the leasing and encourage the investors for the same.
There should be stricter rules for the builders who have more than 80 floors in their project plan.