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Big push to rental housing needed of the hour

Comments Off on Big push to rental housing needed of the hour   |   February 19, 2014    02:35pm   |Contributed by manoja

INDORE: In view of housing shortage in country, a big boost to ‘rental housing’ concept is the need of the hour. Promotion of same can be done in several ways. Credai is expecting three major things from budget. Their demands include income from renting of properties be taxed at a flat rate of 10% and services of property management firms and deduction from rental income under section 24 (a) be increased to 50%.

Section 80-IA (infrastructure status to housing sector) of Income-Tax Act provides that where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any of the business referred to in sub-section (4), then a deduction equal to 100% of the profits and gains derived from such business shall be allowed for ten consecutive assessment years, says a senior official of Credai.

Credai is also in favour of setting up of a dedicated affordable housing fund on the lines of infrastructure fund exclusively for construction of EWS/LIG housing and lending it to developers at low rate of interest. Also, it has demanded that investment in housing finance institutions (HFIs) should be an eligible investment for pension funds, insurance funds and provident funds.

Above all, it has raised demand for facilities like assess to bank incremental deposits, real estate mutual fund (REMF) /real estate investment trust (REIT) and external commercial borrowing (ECB).


News Published Under:   Other City, Real Estate Companies, Real Estate Developers, Real Estate India | Comments Off on Big push to rental housing needed of the hour

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