Budget Wish list-Real estate Body Seeks Tax benefits, infrastructure status

Bangalore: To revive the demand in the upcoming budget, the real estate industry and tax experts are struggling hard to seek tax incentives and infrastructure status.

The real estate sector is also buoyant that the Modi government will announce a few changes to boost this sector. Modi’s ambitious plan to develop 100 smart cities is proposed to offer employment opportunities, education and income level in a wider section to skilled professionals and backward classes.

Some private real estate developers are expecting few fiscal incentives and tax benefits under the Income Tax Act to overcome the supply gap in the housing sector.

These real estate developers are also expecting the liberalization in norms for the real estate sector to build affordable housing and to allow FDI in construction.

SARE Homes, Managing Director, David Walker says that Modi government will mainly focus on Tax incentives in the medium term and interest rate reductions to recover the realty sector. “The simplification and clarification of FDI (Foreign Direct Investment) rules, Infrastructure Investment Trusts and taxation of Real estate Investment Trusts (REITs) will attract foreign capital for the development of 100 smart cities”, he added.

Infrastructure development, which has the potential to thrive the country’s economic growth, has been at the forefront of Modi’s government agenda. It is important to look over the tax exemptions and to introduce the policies which show the positive impact on union budget and also helps to boost the real estate sector, says Viva Homes, Mehul Thakur.

He is also expecting the revise in current FSI Rules and separate industry status, which gives a boost in domestic banks for lending.

In his budget wish list, Raheja said that the Government should give infrastructure status to housing if not for entire Real estate”.

Anuj Puri, Chairman and Country Head, JLL India in his real estate wish list for Budget 2015 says that the government will Provide On ground Impetus for Affordable housing, provide Tax Incentives to boost Rental Housing Segment and More Incentives for sustainable Real estate, Enable faster project Approvals, Implements Real estate regulatory Bill to attract foreign investors, Relax counterproductive clauses in land Acquisition, Rehabilitation and Resettlement Act and Encourages FII Participation  in Real estate.