Budget 2020: Homebuyers express disappointment

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.