CREDAI calls for tax incentives for real estate in Union Budget
25 Jan 2013 8:24 AM IST
Calling for an inclusive housing policy and special housing zone to boost small and affordable houses, developers' apex body CREDAI has appealed to Finance Minister P Chidambaram to initiate widespread tax incentives for making real estate a new growth engine of the economy.
In his budget wish list, CREDAI president Lalit Kumar Jain suggested to the finance minister to allow tax exemption for small houses of under-60 sq m carpet area and creation of special housing zones with tax exemptions on the lines of SEZs for constructing 45-sq m houses for low income groups and 30-sq m houses for the economically weaker sections.
The country’s housing shortage is high at 18.1 million houses and an incremental need is around another 10 million houses. 'It is high time that the government took a pragmatic and practical look at the real estate sector today and take steps that help the industry in particular and the economy in general,' he said.
Jain said the introduction reliefs under sections 80IB and 80 IA of I-T act in 1998 had given a big boost to the entire economy as the direct tax benefits resulted in multiplication in indirect tax revenues of centre and huge gains to states through stamp duty and other taxes. 'We see no reason why real estate cannot become the new growth engine for the Indian economy,' Jain said and pointed out that the sector is highly labour and capital intensive. 'Over 400 industries depend on real estate and construction and that is how we can ensure sky high growth of GDP,' he noted.
In his budget wish list, CREDAI president Lalit Kumar Jain suggested to the finance minister to allow tax exemption for small houses of under-60 sq m carpet area and creation of special housing zones with tax exemptions on the lines of SEZs for constructing 45-sq m houses for low income groups and 30-sq m houses for the economically weaker sections.
The country’s housing shortage is high at 18.1 million houses and an incremental need is around another 10 million houses. 'It is high time that the government took a pragmatic and practical look at the real estate sector today and take steps that help the industry in particular and the economy in general,' he said.
Jain said the introduction reliefs under sections 80IB and 80 IA of I-T act in 1998 had given a big boost to the entire economy as the direct tax benefits resulted in multiplication in indirect tax revenues of centre and huge gains to states through stamp duty and other taxes. 'We see no reason why real estate cannot become the new growth engine for the Indian economy,' Jain said and pointed out that the sector is highly labour and capital intensive. 'Over 400 industries depend on real estate and construction and that is how we can ensure sky high growth of GDP,' he noted.
Next Story
