Happy over 1-year extension of Tax Holiday for real estate developers: Sushil Mohta
Kolkata: Speaking on the Budget 2020, Sushil Mohta, president, CREDAI, West Bengal said , "We are happy that the Tax Holiday for real estate developers has been extended to one year and we welcome that. But we expected Tax Holiday on units in SEZ to be extended up to 2025. However affordable housing continues to be the focus of the government and the extension of Rs 1.5 lakh tax benefit on interest paid on affordable housing loans bears testimony to that.
However there was no announcement on rental stock of properties. In developing countries like India, it is important to encourage Rental stock of properties. The rental income earned by individuals as well as institutions is taxable. We at CREDAI had recommended 100% of the rental income up to Rs. 20 lakh per annum should be exempt from the payment of income tax . In India 2% of the rural population is migrating to the cities every year. The new migrants cannot afford housing of their own and end up in slums. The scheme will promote rental housing for new settlers and limit slums."
He further added , "The tax structure will provide more income in the middle class which could lead to increased consumption in the residential sector".