With the aim to gain tax-benefits, the National Real Estate Development Council demanded that the housing segment should be given infrastructure status.
The National Real Estate Development Council, NAREDCO, knows it well that if the housing segment is given infrastructure status they can obtain many tax-benefits. With this aim the national council has raised the demand for including housing segment in the list of entities with infrastructure status.
Favoring the demand of the developers’ council, Housing Ministry said that the infrastructure status can be given to the affordable housing segment alone. The ministry officials added that there will be special focus on the affordable housing segment.
Sri Ajay Maken, the Housing Ministry Chief, revealed that the ministry is very hopeful of bringing some positive changes in the housing segment, especially in the affordable segment. However NAREDCO was demanding the infrastructure status for the entire housing segment.
If the infrastructure status is given to the residential segment, the builders will be able to gain many tax-benefits. However their hopes were not promoted by the housing ministry which said that the status can be given only to the affordable houses.
NAREDCO also opined that by making rental housing more attractive, the builders can address the existing housing shortage. For this the Income Tax Act should be amended, stated the council which demanded an increase in the deduction rate in the rental income.
The council suggested that deduction rate (from rental income) should be increased from the present 30% to 50 %. The council also suggested that the deduction rate should be 100% for women and senior citizens. The council said that this will empower women-folk.
According to Mr. Brotin Banerjee, Tata Housing Ltd.’s MD and CEO, the service tax should be removed. Adding to it, he said that the income tax exemption limit should be raised to Rs.3,00,000. He also demanded that reduction of excise duty as well.