Demand of Builders

Builders have demanded to remove the uneven tax structure for Information Technology SEZs and non-Information Technology SEZs similar to Information Technology Parks, Software Technology Parks and commercial complexes in this financial year’s budget. Builders took up this matter in a meeting with housing and urban poverty alleviation minister. Previously, the government had considered the option of creating restriction to stop the migration of IT companies from non-SEZ areas to SEZs.

Mr. R S Ajmera, Confederation of Real Estate Developers Association of India (CREDAI) said, “However, this may not have granted the result. As a substitue, all IT and ITES companies operating from non-SEZ areas should be extended the same tax rebates and other incentives that are available to SEZs”. During the meeting for pre-budget debates between CREDAI and ministry, the issue of tax on long-term capital gain was also raised. The representation personnel stated, “The gain arising on transfer of house property being long-term asset should be only at 10% along with profit of indexation”.

Government has previously expressed its intention of bringing in a real estate regulator for Delhi NCR. However, the real estate developers see it as just another addition on to the long list of clearances. Mr. Ajmera asked,” This industry, unlike telecoms sector, has a no. of number of players. How, then, will these regulator be supportive?”

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