Real Estate Industry Demands Tax Relief

February 6, 2008	(2 votes, average: 4.5 out of 5)  Loading ...
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India’s second largest employment generating industry post agriculture, Real Estate, is keenly awaiting the Union Budget with a list of expectations. This expectation list chiefly comprises key issues like simplification of income tax structure, reduction in service tax and clarifications in the FDI-related issues.

The FM’s policy announcements will be a key factor in the industries plans in relation to sectoral concepts such as rental housing, and real estate investment trusts (REITs) to make housing more affordable for common man and help the industry raise more funds. The Confederation of Real Estate Developers’ Association of India (CREDAI), has demanded a complete restructuring of income-tax provisions currently governing the real estate sector.

Speaking on the same Rajnikant Ajmera, president, CREDAI, said “We have asked the government to take a re-look into various sections like 80-IB (10) of the Income Tax Act. Similarly, various sops given in the Income Tax Act for facilitating affordable housing and real estate need to be examined. The government should also look into reducing various levels of taxations at Centre and state governments.”

To further drive the FDI momentum in Indian realty, and to further encourage foreign investors and developers, industry experts suggest the lowering of the threshold of FDI below 50,000 sq metres,” Anuj Puri, chairman and country head, JLLM, said. “The government needs to further open up fund-raising mechanism of the industry, remove the restriction imposed on the borrowing programmes like ECB. There are doubts still prevailing whether realty firms can tap the GDR/ADR market,” Lalit Gandhi, CMD of Lok Housing and president of Mumbai Remaking Federation (RoMF), said.

News Published Under:   Real Estate India |

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