The apex national body for real estate development, National Real Estate Development Council (NAREDCO), has put its recommendations - ‘pre- budget memorandum 2012-13', for inclusion in the Budget 2012 with a series of measure to accelerate housing development in India.
NAREDCO works to create and sustain a business environment conducive to the growth of real estate industry in India in partnership with industry & Government alike through advisory and consultative processes.
Mr. Navin Raheja, President, NAREDCO said, “Urban shortfall is estimated about 2.8 crore housing units, which is likely to further rise with the urbanisation expected to double by the middle of this century. This calls for drastic changes in government policies to attract investment in the housing sector and accelerate supply. The government has to unleash locked land bank that can be use in development of houses for low income groups.”
NAREDCO has put forward following major suggestions:-
^ Increase deduction limit on account of interest payment on home loan from Rs.1.5 lakh to Rs. 3 lakh.
^ It has suggested to increase the deduction limit from 30%, presently available u/s 24(a), to 50% and levy tax only on 50% of the rental income. This is necessary to incentivise people to build / buy houses for renting purposes and, thus, increase rental housing stock.
^ To improve investment, declare housing as ‘infrastructure’ to benefit developers to raise funds at low rate of interest as most countries & World Bank treat housing as infrastructure.
^ Service Tax on residential construction should be withdrawn.
^ Creation of a dedicated affordable housing fund, in line with infrastructure fund, exclusively for developing housing of economic weaker section (EWS) & low income group (LIG)
^ 100% deduction of profits derived from constructing housing units up to 1,200 square feet built up area be allowed. This will go a long way in addressing the housing requirement of LIG and MIG categories.
NAREDCO works to create and sustain a business environment conducive to the growth of real estate industry in India in partnership with industry & Government alike through advisory and consultative processes.
Mr. Navin Raheja, President, NAREDCO said, “Urban shortfall is estimated about 2.8 crore housing units, which is likely to further rise with the urbanisation expected to double by the middle of this century. This calls for drastic changes in government policies to attract investment in the housing sector and accelerate supply. The government has to unleash locked land bank that can be use in development of houses for low income groups.”
NAREDCO has put forward following major suggestions:-
^ Increase deduction limit on account of interest payment on home loan from Rs.1.5 lakh to Rs. 3 lakh.
^ It has suggested to increase the deduction limit from 30%, presently available u/s 24(a), to 50% and levy tax only on 50% of the rental income. This is necessary to incentivise people to build / buy houses for renting purposes and, thus, increase rental housing stock.
^ To improve investment, declare housing as ‘infrastructure’ to benefit developers to raise funds at low rate of interest as most countries & World Bank treat housing as infrastructure.
^ Service Tax on residential construction should be withdrawn.
^ Creation of a dedicated affordable housing fund, in line with infrastructure fund, exclusively for developing housing of economic weaker section (EWS) & low income group (LIG)
^ 100% deduction of profits derived from constructing housing units up to 1,200 square feet built up area be allowed. This will go a long way in addressing the housing requirement of LIG and MIG categories.
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