NEW DELHI: Real estate industry body CREDAI on Friday made a slew of recommendations to the government, including providing a clear definition of affordable housing and removing tax anomalies. These, they said, would optimise the benefits accruing from announcements on housing in the union budget.
In a meeting with urban development minister Venkaiah Naidu, a CREDAI delegation led by president Getamber Anand, president elect Jaxay Shah, secretary Boman Irani and treasurer Shekhar Patel recommended that affordable housing should be defined as units up to 60 sq metres in metros and 90 sq metres in non-metros.
The realtors’ body also said that exemption from service tax should be extended to construction of affordable houses up to 90 sq metres under any scheme of the central or state government including PPP schemes based on the above definition of affordable housing.
CREDAI has also asked the government to increase the limit for deduction of interest under section 24(b) and 80C by an additional Rs 1 lakh per annum.
“After a long time, the Union Budget has brought positive announcements for the home buyers. This is a reflection of the changing sentiment in the industry,” said Anand, adding, “CREDAI would like to extend its deepest appreciations to Shri Arun Jaitley and Shri M. Venkaiah Naidu for their efforts towards housing sector. This has renewed the industry’s confidence and commitment to achieve PM’s vision of Housing for All.”
Some of the anomalies in the Income Tax law which are limiting investments into housing sector according to the realtors’ body are property transactions are being taxed at the guideline values Under Section 43CA where as the market price is much lower, Joint Development Agreements are being taxed as though income accrues at the time the agreement is entered into.
From ET Realty