The National Real Estate Development Council (NAREDCO) has advocated for raising the tax exemption limit on home loan interest to Rs 5 lakh. This proposal is aimed at providing significant financial relief to homebuyers and boosting housing affordability in India.

Currently, the tax exemption limit for home loan interest stands at Rs 2 lakh. NAREDCO's recommendation to increase this limit to Rs 5 lakh is part of a broader strategy to stimulate the real estate sector and address the growing demand for affordable housing. By raising the exemption limit, NAREDCO believes it will encourage more individuals to invest in property, thereby revitalizing the housing market.

The proposal comes at a crucial time as the real estate sector continues to recover from the economic impacts of the COVID-19 pandemic. The increased tax exemption is expected to provide much-needed support to homebuyers, easing the financial burden associated with purchasing a home. This move is also seen as a step towards making housing more accessible to a larger segment of the population.

NAREDCO's push for policy changes aligns with its ongoing efforts to work with the government and other stakeholders to create a favorable environment for real estate development. The organization is hopeful that the recommendation will be considered in the upcoming budget, bringing positive changes for the sector and homebuyers alike.

The proposed increase in the tax exemption limit is also expected to have a multiplier effect on the economy. By stimulating demand for housing, it will likely lead to increased construction activities, job creation, and overall economic growth. NAREDCO's initiative highlights the importance of supportive policies in driving the growth of the real estate sector and enhancing housing affordability in the country.

As the government prepares for the next budget, NAREDCO's proposal for raising the tax exemption limit on home loan interest to Rs 5 lakh will be closely watched by stakeholders in the real estate industry and potential homebuyers, hoping for measures that support their financial needs and contribute to the sector's robust recovery.