Gurugram developers seek more Swamih funds, tax relief

Developers in Gurugram and across India have written to the finance minister seeking more funds and tax relief in the upcoming Union budget. They have requested the second tranche of the SWAMIH funds and incentives for rental housing to achieve the 'housing for all' target.

The developers based in Gurugram and across the country, under the aegis of National Real Estate Development Council (Naredco), have written to the Union finance minister to seek more funds and tax relief as a pre-budget demand. They also urged the finance ministry to come up with the second tranche of the Special Window for Affordable and Mid-Income Housing (SWAMIH) funds of ₹50,000 corpus in the upcoming Union budget for FY 2024-2025, people aware of the development said on Thursday.

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The developers also sought budgetary support and relaxations, including allowing input tax credit under GST and incentives for rental housing in order to achieve the ‘housing for all’ target.

The developers said that Swamih funds will further help in reviving housing projects that are stuck, boost liquidity in the housing sector and also push for affordable home segment.

Union budget will be presented by finance minister Nirmala Sitharaman on February 1.

G Hari Babu, president, Naredco, suggested the amendment of Section 23(5) to either abolish “notional income” or increase the timeline by five years for considering it as it caused a considerable tax burden. “In order to incentivise rental housing in the country, the tax burden on notional rental income should be exempted,” he said, apart from asking for easier funding for the industry and MSME status to some projects within parameters.