NAREDCO, the National Real Estate Development Council, demanded that the housing segment should be given infrastructure status as it will enable them to gain tax benefits.
National Real Estate Development Council has recently demanded infrastructure status for the housing segment. The Housing ministry expressed that infrastructure status can be given to the affordable housing segment.
Housing and Poverty Alleviation Ministry (MHUPA) gestured that this time special focus will be on affordable housing segment. Housing Ministry revealed that they are hopeful of bringing some changes in the affordable housing segment.
NAREDCO has demanded the infrastructure status to whole real estate segments. Developers’ national council hopes that they can gain some tax- benefits if the infrastructure status is given to the housing segment as a whole. Confronting to their views, housing ministry indicated that only affordable housing segment needs to be given the infrastructure status.
NAREDCO has also placed its suggestion to make the rental housing more attractive. According to the council, by making rental housing more attractive, housing shortage can be addressed and met.
The national council suggested amendment in the Income Tax Act. The prevailing deduction rate from rental income should be raised from 30% to 50 %. While the deduction rate, for women and senior citizens, should be 100%, suggested the national council of developers. The council said that it will empower women.
According to the developers, RBI’s tight monetary policy slackens the demand for housing units. Cushman and Wakefield has reported that the new launches dropped by 16% in the previous year. The report was based on their study conducted in the eight major cities of India like Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.
Tata Housing Ltd.’s MD and CEO Mr. Brotin Banerjee said that the service tax should be taken away from the housing segment. He said that he expected a raise in the income tax exemption limit to rupees three lakh. He also had expected a reduction in the excise duty as well.
Mr. Banerjee opined that if service tax for the residential construction is taken away, the demand will be revived as more consumers will engage them in the buying and purchasing activity.