PHD Chamber of Commerce & Industry (PHDCCI) today urged the government to push the housing and construction sector by increasing the deduction for the purpose of income tax up to Rs 5 lakh from the current Rs 2 lakh for interest paid on home loan, a chamber handout to Greater Kashmir said.
"This will reduce EMI and help increase disposable income of the people and investment in the real estate sector," said newly elected PHDCCI President Dr Mahesh Gupta while addressing his maiden Press Conference.
Stimulus to real estate sector would provide a significant fillip to the economy and enhance India's GDP by another two percentage points, Gupta who is also Chairman of the Kent RO systems said.
He emphasized that the government expenditure in infrastructure needs to be increased to boost industrial demand.
Releasing the PHDCCI's Vision Document, its chief lauded the new government's "dynamic economic thrust" which he said has already led to an economic breakthrough during the past 18 months.
Dr Gupta said the GDP growth is strong on the back of acceleration in industrial activity in the recent months (October IIP at 9.8%).