THE real estate industry, the second largest employment generator in the country after agriculture, is awaiting the Budget with a list of expectations. Finding a place on the list are simplification of the incometax structure, reduction in service tax and clarifications over FDI related issues.
The industry would be tracking FM’s policy announcements for ushering in sectoral concepts such as rental housing and real estate investment trusts (REITs) to make housing more affordable for the common man and help the industry raise funds for development.
The Confederation of Real Estate Developers’ Association of India (CREDAI), the apex body of builders in India, has asked for a total restructuring of income-tax provisions currently governing the real estate sector.
“We have asked the government to have a relook into various I-T Sections like 80-IB (10). Similarly, various sops given in the Income-Tax Act for facilitating affordable housing and real estate need to be examined. The government should also look into reducing various levels of taxation at Centre, state and local governments,” Rajnikant Ajmera, president, CREDAI said.
“To further drive FDI momentum in Indian real estate, and to further encourage foreign investors and developers, industry experts suggest the lowering of the minimum threshold of FDI below 50000 square meters. This would allow FDI to feature in inner city projects,” Anuj Puri, chairman and country head JLLM said.