Budget 2020: Homebuyers express disappointment

Homebuyers exepecting some relief in Union Budget 2020 are a disappointed lot along with builders, who were hoping that there would be a one-time restructuring of loans and steps would be taken to plug the liquidity issue.

Homebuyers were hoping for immediate deployment of Rs 25,000 crore Alternative Investment Fund (AIF) and last-mile funding extended even for net-worth negative and non-RERA registered projects.

Builders were hoping for a one-time restructuring of loans and increase in the limit of affordable housing from the current cap of Rs 45 lakh.

Homebuyers had also proposed that the principal repayment on a housing loan be separated from the overall limit of Rs 1.5 lakh under Section 80C.

The amount -- Rs 1,50,000 -- set aside as principal repayment of home loan, which currently qualifies under Section 80C of Income Tax Act, should be brought under a different provision and not clubbed with 80C, a homebuyer had said.

"Real estate sector is yet to reach anywhere near its past high despite all tax sops provided in previous year's Budget.  This is partly because tax sops has failed to infuse confidence in the sector and also because many of the tax benefits provided remains on paper only. It was expected that Union Budget 2020 would at least would rationalise tax incentives already provided in earlier year's Budget so that benefit actually accrues to homebuyers than it being merely on paper," Abhay Upadhyay, President, Forum for Peoples Collective Efforts told Moneycontrol.

Builders may have welcomed the incentives extended to affordable housing but are disappointed that none of their demands have been met.

"Affordable housing segment has got a boost with the FM proposing to extend the tax holiday by one more year. However, the Budget leaves much to be desired for the real estate segment," said Chintels MD Prashant Solomon.