Urban Development Minister Demands Incentives for Realty Sector

January 7, 2009	(Be the first to rate this story!)  Loading ...
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Urban development minister S Jaipal Reddy wants more incentives to be given to the realty sector which include lowering of interest rate from 8.5% to 6.5% for loans up to 5 lakh and 9.25% to 7.5% for loans up to Rs 30 lakh. In a letter to the Prime Minister, the UD minister has asked for the doubling of income tax rebate on home loan interest to Rs 3 lakh and raising the income tax exemption on rentals from 30% to 50%.

Highlighting the fact that the demand in real estate has come down by 80%, Reddy wanted the restoration of the income tax concession under Section 80 1B 10 to developers. He also wants banks to restructure loans to real estate players as this will help iron out asset-liability mismatches. “Housing projects should be treated on par with the infrastructure sector for all purposes, including bank funding,” Reddy said. A senior official pointed out that the ministry has sought that the package be redesigned in a way that it helps end-users and the middle class and not just the industry.

News Published Under:   Real Estate India |

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