NAREDCO Urges Budget Boost: Higher Home Loan Deduction, Settlement Commission Revival

• NAREDCO recommends raising the home loan interest deduction limit from Rs 2 lakh to Rs 5 lakh or more for owner-occupied houses.
• The real estate body also seeks to remove the five-year period for acquisition or completion from the year of borrowing for home loans.
• NAREDCO advocates for the reinstatement of the Income-tax Settlement Commission, discontinued in February 2021, to resolve tax disputes.
• These measures aim to stimulate end-user demand, provide relief to homebuyers, and foster an investor-friendly environment in real estate.
• The real estate sector contributes 7-8% to India's GDP and is the second-largest employer after agriculture.

Why It Matters: NAREDCO proposes key budget changes to boost real estate, including higher home loan deductions and tax dispute resolution.