Budget 2024: Why Property Moguls Want Tax Breaks for Middle-Class Indians

Bring Back the Subsidies A component of the Pradhan Mantri Awas Yojana (Urban), the CLSS initiative was introduced in January 2017. Its goal was to provide affordable housing to the urban poor. The initiative offered interest subsidies on housing loans to economically-weaker sections (EWS), low-income groups (LIGs) and middle-income groups (MIGs). Subsidies ranged from 3 per cent to 6.5 per cent on housing loans. These subsidies were discontinued in 2021 for MIG and 2022 for EWS and LIG as the Union government prioritised fiscal consolidation and checked expenditure wherever it could. But now, with a bumper surplus of Rs 1 lakh crore from the RBI and various industry bodies calling to give consumption a bump-up, realtors hope the Centre will have a change of heart.Ashok Singh Jaunapuria, managing director and chief executive of real estate developers SS Group, says, “The property sector looks forward to the Budget with anticipation of tax reforms, more incentives for affordable housing, higher investment in urban infrastructure and streamlined regulatory processes.”Along with a return of CLSS, builders are now calling for an increase in the interest deduction limit on home loans from Rs 2 lakh to Rs 5 lakh. “Increased deductions on home loan interest can make owning a home more financially viable for many, potentially leading to a surge in demand for residential projects,” says Jaunapuria.Several industry groups are calling on the government to provide some relief to taxpayers in a bid to give consumption a fillip. Earlier, the fast-moving consumer goods (FMCG) sector also called on the government to provide relief to citizens to stir demand, especially in the rural markets.

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