Budget 2015-16 Expectations: Re-Introduce Income Tax Benefit for Housing..!

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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