Pradeep Jain, President, CREDAI-NCR and Chairman of Parsvnath Developers, spells out the wish-list of the realty sector.
Tax holiday for housing projects - Section 80-IB (10):
In order to support developers' efforts of promoting LIG/MIG housing projects there is an immediate need for a tax holiday to make LIG/MIG housing a more realistic proposition. For the same, the cut-off date for eligibility should be further extended and tax holiday eligibility, based on project completion condition should be restored. The tax holiday benefit under Section 80-IA (4) (iii) is only for industrial parks notified up to March 31, 2011. We suggest that the time limit for notification of industrial parks under the New Industrial Park Scheme 2008 be extended up to March 2015 as during the slowdown in 2008-2009 there were certain delays in the execution of the projects.
Budget news | Budget gallery | Special: Budget 2010
Infrastructure status to integrated townships
Integrated townships projects should be given incentives at par with infrastructure and single window clearance mechanism should be introduced for such integrated townships to ensure efficient execution. Integrated township projects deserve infrastructure status as while developing integrated townships, developers also develop the infrastructure comprising of roads, lighting, water drainage systems etc in and around the township.
Slum redevelopment projects/ dilapidated housing / social housing
Measures such as tax incentives should be extended to developers who take initiative of improving social infrastructure through Slum Redevelopment Projects/ Dilapidated Housing / Social Housing.
Tax holidays to industrial parks - Section 80-IA (4)(iii)
Growth in commercial space during 2007 and 2008 was driven primarily by IT and ITeS sectors. But following the slowdown over the last two years, IT spending, particularly in the BFSI sector, has been hit. Therefore, the minimum tenant requirement should be reduced to 10 units. Also, the time limit for notification of industrial parks under the New Industrial Park Scheme 2008 be extended up to March 2015 and benefits under Section 80-IA should be extended to developers.
Income from other sources- Section 56 (2) - Section 56(2) of the Act, should not be made applicable to the transfer of immovable property
Deduction for principal repayment of a housing loan - Section 80C -
In addition to the existing deduction of upto Rs 100,000, a separate limit up to Rs 2 lakh deduction should be permitted for repayment of principal portion of housing loan for self occupied residential property
Budget wish-list? | Union Budget: Sectors wish list
ECB through automatic route
ECBs be permitted for funding construction costs of real estate projects, at least for those projects which qualify for 100% FDI as per Press Note 2 if not all.
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