Budget 2022: Realty seeks increase in approval time frame for rental housing

By Pelumi Emmanuel

Published: January 30, 2022 | 4:35 PM GMT

The National Real Estate Development Council has requested the Centre to increase the approval time frame of such housing projects by at least five years.

“The rental housing policy is not yet final across several states. Hence, to incentivise the developers of rental housing projects, the time limit of approval should be increased by at least five years,” stated Dr Niranjan Hiranandani, Vice Chairman of NAREDCO.

NAREDCO President Rajan Bandelkar added that the Centre should increase the deduction of interest on home loan for self-occupied house from taxable income to at least Rs 5 lakh in order to promote the ownership concept.

Currently, interest on borrowed capital to acquire a house for rental purposes is allowed in full. However, in the case of self-occupied houses, interest is restricted to Rs 2 lakhs, the council said.

Further, the Council urged the Centre to treat the units of ‘Real Estate Investment Trusts’ equivalent to listed entities for direct tax computation.

About Pelumi Emmanuel

Pelumi Emmanuel is an accomplished writer and journalist with over 15 years of experience in the industry. He is a passionate and dedicated professional who is committed to producing high-quality content that informs, engages, and entertains readers. Pelumi’s love for reading and writing is evident in his work, which has been read worldwide and has garnered him a loyal following. His journalistic expertise is matched only by his natural talent for storytelling, making his articles both informative and engaging. He lives in California, USA.