Realtors seek tax breaks for home buyers, builders to beat sluggish demand
Developers have sought both industry and infrastructure status for themselves
Feb 11, 2014
Source : The Financial Express

 

DELHI: To beat a sluggish demand, real estate developers have sought tax breaks for home buyers and builders that could help boost sales as well as speed up new launches.

Developers have sought both industry and infrastructure status for themselves and an enhancement in the tax break given to home buyers on the repayment of loans taken for the purchase.

Finance minister P Chidambaram had earlier this week said the government would be able to announce in the interim budget scheduled for February 17 only those changes in the tax regime that do not require amendments to the law, which means no changes in income tax or corporate tax rates but possible cuts in excise, service tax and customs duties.

Developers have told the finance ministry that housing companies do set up infrastructure facilities such as roads and bridges as part of their projects and hence should be eligible for the ten-year income tax exemption given to companies in the main businesses of making roads, ports, highways and railway systems. CMD of Raheja Developers Naveen Raheja said the industry has been witnessing a slowdown and has been awaiting these tax concessions for quite some time. “The ministry of housing and urban poverty alleviation has assured us of these tax concessions. We look forward to some relief this time," Raheja said.

They have also sought industry status for the sector so that builders could access cheaper credit. One of the reasons cited by many for high prices of houses is the high cost of funds for the sector. Industry status would help real estate developers to access external commercial borrowings, which bear abysmally low interest rates. The government, however, is cautious against low-cost foreign funds flowing into the sector as it could create asset bubbles and systemic risk.Now, corporate entities that borrow from abroad are prevented from using those funds for capital market and real estate transactions.

Home buyers are at present allowed to deduct their repayment installments to banks from their taxable income up to a maximum of Rs one lakh a year. Builders have pointed out to the ministry

Latest Realty News

Intellectual property rights: US set to punish India
Feb 11, 2014
DELHI: It's not looking good between New Delhi and Washington. Tensions over the Khobragade episode are yet to fully dissipate, but the two sides are locking horns again over intellectual property rights. The Obama administration is scheduled to announce unspecified ''trade enforcement action'' against India on Monday evening (Tuesday am IST) Washington time.
DLF to get Rs 700-crore refund from DDA
Feb 11, 2014
DELHI: Realty major DLFBSE -0.49 % will get a refund of around Rs 700 crore from the Delhi Development Authority (DDA) for returning a 35-acre plot of land it had acquired in 2007 in Dwarka to build a convention centre, a senior company executive said.
DLF gets Rs 676 crore refund from DDA after settling disputes
Feb 11, 2014
DELHI: Realty firm DLFBSE -0.42 % today said it has received a refund of Rs 675.81 crore from DDA following the scrapping of a project to develop an international convention centre in the national capital.
DLF may not gain much from stake sale in Aman Resorts
Feb 11, 2014
DELHI: The stake sale in Aman Resorts may not have a significant impact on the earnings of real estate developer DLF. Despite several asset sales in the past, DLF's stock has halved in the past one year due to the company's weak operational and financial performance.
Gurgaon: Sector’s growth engine in the NCR
Feb 11, 2014
DELHI: Investments in real estate have been one of the greatest wealth builders in history. However, such investments have to be well gauged and thoroughly researched, a report by DTZ says. Over the years, a few micromarkets in the Delhi NCR have emerged as destinations for future investments, which are not only providing relative affordability but are also undergoing significant transformations owing to infrastructural development, improving connectivity, and the potential to attract real estat
Haryana approves RIL’s quitting Gurgaon SEZ
Feb 10, 2014
CHANDIGARH: Haryana government today approved Reliance Industries’ proposal to opt out of SEZ in Gurgaon and said it will reimburse Rs 343 crore to it, lower than Rs 1,172 crore demanded by the company, for taking back the land.
More properties go under hammer as borrowers under stress: Assocham
Feb 10, 2014
DELHI: An increasing number of properties and assets mortgaged to lenders are going under the hammer due to non-payment of loans, a study by Assocham has found. “Visibly, the sale and possession notices appear more for the small-sized assets mortgaged for loans which have gone bad. The stress seems more in small-sized manufacturing units,” the study paper said.
Noida Extension flat owners express concern over Allahabad High Court ruling
Feb 09, 2014
GREATER NOIDA: With the Allahabad High Court recently asking the authorities to return land acquired at Patwari village to its original owners, the Noida Extension Flat Owners Welfare Association (NEFOWA) today expressed its concern over the development.
Indian economy to grow at 4.9 percent in 2013-14
Feb 08, 2014
DELHI: The Indian economy is expected to grow by 4.9 percent in the financial year ending March 31, 2014 as compared to 4.5 percent expansion recorded in the previous year, government data showed Friday.
Services sector contracts for 7th straight month: PMI
Feb 08, 2014
DELHI: In January, India’s services sector contracted for a seventh consecutive month, showed the HSBC Purchasing Managers’ Index (PMI).

Latest Realty News Of State

Realty Talk's