Budget 2025: NAREDCO Proposes Hike in Housing Loan Interest Deduction

As per news reports, the National Real Estate Development Council (NAREDCO) has urged the government to increase the deduction on housing loan interest payments from ₹2 lakh to ₹5 lakh in the upcoming 2025 Budget. This proposal is aimed at boosting the flow of funds into the affordable housing sector.

Housing Sector to Get Infrastructure Status

NAREDCO Chairman Niranjan Hiranandani also advocated for granting infrastructure status to the housing sector to help channel more funds into affordable housing. He emphasised the need for more focus on energy, urban development, and road infrastructure growth to support the sector.

Affordable Housing Growth Decline

Hiranandani expressed concern over the negative growth in the affordable housing sector, a first in his 40-year career. He called for greater attention to the Pradhan Mantri Awas Yojana scheme, which aims to promote affordable housing.

Focus on Rental Housing

Hiranandani also pointed out that while much of the focus has been on ownership housing, there is a need to shift focus to rental housing as well. He cited the government’s recent initiative to support rental housing for industrial workers and urged further focus on this area.

Capital Gains Tax Issues

Hiranandani also discussed concerns related to capital gains tax when buying new houses. He highlighted that there is no exemption for capital gains tax when purchasing multiple homes, even if the buyer has several children.

Support for Indian Infrastructure Companies

Larsen & Toubro (L&T) Head of Indirect Taxes, Gurinder Pal Singh, mentioned that Indian infrastructure companies are increasingly operating internationally. Singh requested more proactive support from the government to address issues that arise when working on offshore projects.

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