As expectations build around Budget 2026, the real estate sector is increasingly calling for clarity on capital gains taxation and GST relief to support sustainable growth and improve buyer sentiment. Industry stakeholders believe targeted tax reforms could unlock stalled demand and bring greater transparency to property transactions.
One of the key asks is simplification of capital gains rules, particularly around holding periods, indexation benefits, and tax treatment across asset classes. Developers and investors argue that clearer, more predictable capital gains norms would encourage long-term investment and reduce disputes, especially for individual homebuyers and small investors.
Another major demand is GST rationalisation for real estate, including input tax credit (ITC) benefits for residential projects. While GST was intended to streamline taxation, the absence of ITC for most housing segments has increased costs for developers, which often get passed on to buyers. Industry bodies say partial or conditional ITC restoration could help moderate prices and improve affordability.
Experts note that any relief must balance fiscal discipline with sectoral support. With housing linked to employment, consumption, and infrastructure growth, well-calibrated tax measures could have a multiplier effect on the broader economy.
As policymakers at the Government of India finalise Budget 2026, the real estate sector hopes for reforms that deliver tax certainty, lower friction, and renewed confidence—paving the way for more stable, end-user–driven growth
