A number of homebuyers in the twin cities of Noida and Greater Noida will not benefit from the Union government’s new rule on tax rebate on home loan EMIs because of delayed projects.
Finance minister Arun Jaitley extended the period of tax rebate on EMIs from three years to five years in his Budget which was announced on Monday. Homebuyers, who are paying EMIs without the physical possession of their flats for five years, can now seek tax rebate on EMIs for the same period in four installments.
“The central government’s move is good, but it will help a very few people in the vicinity. Most of the projects in Noida and Greater Noida are delaying possession from five to seven years. The government must understand that we are paying the EMI without shifting to the flats. The money is still going to the banks and they are making a profit. Why they are giving us time-bound rebate,” Abhishek Kumar, president of New Era Flat Owners Welfare Association (NEFOWA), said.
The homebuyers’ association demanded the removal of time-bound relief on tax on EMIs.
“It has been five years since I bought a flat at Logix Blossom County in Noida. Since then, I am waiting for the possession. According to the new law, my EMIs will be out of permissible limit from next year and I don’t know when I will get the possession. The government should check the ground reality. All the projects are delayed,” Neeraj Kumar, a homebuyer, said.
People who have bought houses at the soft launch of the projects are suffering the most. Many of the builders have delayed giving the possession of the houses up to eight to nine years.
“It has been six years since I booked a flat at Arihant Arden project at Greater Noida West. Now, I cannot seek tax rebate on EMIs and nobody is assuring when will I get the possession of my flat,” Hareram Pathak, a homebuyer, said.
The builders, however, welcomed the government’s move and said it will promote buyers to invest in properties.
“It is a reality that no builder can deliver a group housing project within three years and five years is a minimum requirement for completing a project. It is good that the government thought about the investors’ money. We hope this will attract flow of money in the industry,” Amit Modi, vice-president of Confederation of Real Estate Developers Association of India, western UP, said.