NAREDCO requests that the Finance Ministry begin the Swamy Fund's second phase

 NAREDCO requests that the Finance Ministry begin the Swamy Fund's second phase

NAREDCO requests that the Finance Ministry begin the Swamy Fund's second phase

Additionally, the builders' group has called for the elimination of the tax on projected rent on unsold inventory.

The builders' group has also suggested giving MSME status to qualified real estate projects and permitting priority sector funding for real estate projects in order to enable real estate projects get greater liquidity and discounts.

The National Real Estate Development Council (NAREDCO) asked Finance Minister Nirmala Sitharaman to introduce the second tranche of the SWAMIH (Special Window for Affordable and Middle-Income Housing) investment fund, which has a capital of Rs 50,000, prior to its presentation in February 2024. have completed. crore in the forthcoming 2024–2025 budget and have pushed them to do away with income tax on unsold apartments in all projects.

For real estate projects that meet the requirements for other sectors, the Indian real estate developers' association has applied for MSME, or micro, small, and medium business, designation.

The ultimate beneficiaries of SWAMIH, according to NAREDCO Chairman Ghari Babu in a letter to Sitharaman, are house purchasers since the second payment would restart additional projects that have halted, which is why SMAHIH was established in the first place.

Over two lakh house purchasers benefitted from this initiative, which saw over Rs 1 lakh crore worth of non-performing assets turned into performing assets. "Swami has done a great job in reviving the stuck projects." Thus, Babu told Moneycontrol, "the government should establish the second tranche of the SWAMIH fund for the fiscal year 2024–2025 with a corpus value of Rs 50,000 crore."

The builders' group has also suggested giving MSME status to qualified real estate projects and permitting priority sector funding for real estate projects in order to enable real estate projects get greater liquidity and discounts.

When giving this industry MSME designation, the government could set certain restrictions. We want real estate projects with an annual revenue of Rs. 50 crore or Rs. 100 crore to be granted MSME status. The government may set the restrictions or guidelines. Developers will be able to get loans at reduced interest rates thanks to this, according to Babu.

Additionally, Babu said that he has asked the government to do away with the income tax that builders impose on unsold property. According to Section 23(5) of the Income Tax Act, he said, if unsold property maintained as stock-in-trade is not rented out, the property's yearly turnover must be completed within two years of the end of that fiscal year. After the completion certificate is received, the value will be calculated using the expected rental revenue for the property.

Many tenants who were occupying workplaces and businesses have either closed down or bargained rents and provided zero or minimal rates as a consequence of the three Covid-19 waves, the lockdowns that followed, and the effect on the economy. remitted payment. There are now around 7 lakh unsold apartments throughout the nation. We suggested that unsold apartments be excluded from income tax," Babu said.

In order to accomplish the aim of housing for everyone, NAREDCO also recommended in its pre-Budget recommendations relaxations such as permitting input tax credit (ITC) and incentives for rental housing under the Goods and Services Tax (GST). Additionally, the developers' group has asked that developers be permitted to claim Input Tax Credits (ITC) for residential projects that come within the higher-slab GST.