Provide Tax benifits for housing sector for basic selling price of Rs 60 lakh in the country in coming budget

Rohtas Goel Chairman Advisory Council National Real Estate Development Council (Naredco) has demanded the reintroduction of tax benefit under section 80-1B(10) in coming union budget 2015 to provide tax benifits for the housing sector upto basic selling price of Rs 60 Lakhs in the country to boost demand of housing sector and to realise the dream of Prime Minister for providing housing for all by 2022 in the country.

Rohtas Goel Chairman Advisory Council (Naredco) and Chairman Oxame Limited has demanded that

80- IB(10) benefit should be extended to the part of the Project with 1000 sqft Residential units in metro cities with a cap of basic selling price of 60 lakh Rs and 1500 sqft built up area in non metro cities with a cap of basic selling pricie of Rs 60 lakh Rs for easier flow of credit and provide affordable housing to common man in the country and boost housing sector to provide affordable houses to middle class society.

Rohtas Goel Chairman Advisory Council (Naredco) and Chairman Oxame Limited has also requested the Government to withdrawal Section 43CA of Income Tax Act, which was introduced by the previous Government in their financial budget 2013. and demanded that market rates should be basis for calculating the dues instead of Govt fixed Circle Rates since circle rates are quite higher and is creating undue hardship to the home buyers & Real Estate Developers and said that Sale- Purchase in housing has been affected to a great extent due to Section 43CA.

Rohtas Goel Chairman Advisory Council (Naredco) and Chairman Oxame Limited demanded that balance approach should be adopted in Real Estate (Regulation & Development) Bill by addressing the concerns of the developers, like accountability of development authorities and added that Half-baked Regulations create more problems, then removing them.

Rohtas Goel Chairman Advisory Council (Naredco) and Chairman Oxame Limited demanded that City Master Plan should only be notified if it has all statutory approvals like Change in Land Use, Environment Clearance, Mining, Maximum Height from AAI etc so as Developer should be able to start the work in minimum possible time and added that while the master plans are formalized by the Governments with defined Land Use. But strangely, the developer still needs to file for Change of Land Use (CLU) & other approvals, even after the Master Plan is notified.

He said that while the Delay in providing supportive infrastructure & timely approvals by the development authority causes delay in delivery of Project, but the Regulatory Bill proposes to penalize only the Developer.

For the convenience & timely execution of Projects, the Master Plan should only be notified if it has all statutory approvals like Change in Land Use, Environment Clearance, Mining, Maximum Height from AAI etc. Developer should be able to start the work in minimum possible time.

He said that in order to enhance the "Ease of doing Business", the Bill should also eradicate the Grey Areas and discretionary powers. Nothing should be left for the imagination of approving authority. Developing Authorities with active support of NAREDCO or CREDAI can develop a Software, wherein all the approvals including building plans can be filled and approved Online by the Software itself, without human interface.

Source : Equity Bulls

Keywords