India: Government mulling budget sops to put its house in order

• The government is contemplating measures to boost the housing sector in the budget, seeing this as a quick way of providing an impetus to the slowing economy and creating more jobs.
• The steps under consideration include a bigger tax benefit to encourage purchases, softer interest rates for affordable housing and restoring some benefits for a second house.
• Policymakers are eyeing measures to reverse the economic slowdown and housing is seen as one of the potential sectors that can aid the process. India’s GDP slowed to a five-year low of 6.8% in FY19.
• The Narendra Modi-led government had raised the maximum deduction from income for interest paid on a loan for self-occupied house from INR0.15mn to INR0.2mn in its maiden budget in Jul 14.
• Tax experts said removal of restrictions and reverting to the previous regime will provide relief to taxpayers as the primary investment of most of Indians is in real estate.

External Link: https://economictimes.indiatimes.com/news/economy/policy/government-mulling-budget-sops-to-put-its-house-in-order/articleshow/69951004.cms