With about a month left for the announcement of
the general budget proposals for fiscal 2015-16, representatives of key sectors
have taken it upon themselves to forward their recommendations to the Union
Finance Ministry.
Mr. Rohtas Goel, Chairman, Advisory Council, National Real Estate Development Council (NAREDCO) and Chairman of Omaxe
Limited, who represents the housing sector, has recommended the re-introduction
of tax benefit under Section 80-1B (10) of the Income Tax Act for the housing sector
up to the basic selling price of Rs. 60 lac in order to give a boost to the
housing sector.
Mr. Goel further stated that Section 80-IB (10) of
the IT Act should be extended to the part of the project with 1000 square feet
residential units in metro cities with a cap of basic selling price of Rs. 60
lacand 1500 square feet. built up area in non-metros with a cap of basic
selling price of Rs. 60 lac for easier flow of credit and to provide
affordable housing.
He also requested the government to withdraw
Section 43 CA of the Act, which was introduced by the previous government in
2013 and demanded that market rates should be the basis for calculating dues
instead of government-fixed circle rates, which were much higher & causing
undue hardship to both house buyers & real estate developers.
He also claimed that the sale and purchase of
housing has been affected by the application of Section 43 CA. He called for a
balanced approach on the adoption of the Real Estate (Regulation and
Development) Bill by addressing the concerns of the developers and cautioned
that half-baked regulations create numerous issues.
Mr. Goel said that the city master plan should only
be notified after all statutory approvals like change in land use, environment
clearance, etc. are in place.
He said that in order to enhance the process, the
Bill should eradicate grey areas and discretionary powers.
Developing authorities, with the active support
of NAREDCO or CREDAI, can develop a software, wherein, all approvals, including
building plans, can be filled and approved online to speed up the process.
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