The tax incentives, which could be announced in the Union Budget, would aim at promoting investments in rental housing by institutional players.
Housing is considered as one of the key sectors to promote growth by increasing demand for steel, cement, besides creating additional jobs.
The draft policy has suggested tax incentives for house owners who will rent out the property, institutional owners wanting to set up mass rental housing and Property Tax exemption for Social Rental Housing properties.
It also suggested treating rental housing stocks at par with owner occupied premises in terms of property tax treatment and calculating other utility charges (water/ electricity etc).
“The Policy seeks to promote various types of public-private partnerships for promotion of rental housing in the country which will act as a catalytic force to achieve the overall goal of Housing for All by 2022,” it added.