Budget 2013, Real Estate seeks what and why… listed below is some of the wish list which every developer and realty expert  are keenly waiting on what the government has for the real estate sector this year.

Industry Status to Real Estate – Top in the Agenda

Industrial Status for the Real Estate, means, recognising and working under a common regulatory body. This in turn will lead to benefits from all government policies which are provided to all other industries. Currently Real Estate is an unorganized sector but is the largest source of income for a majority part of the population of our county.

This could also facilitate single window clearance system and faster approval for realty projects.

The infrastructure status to this segment will allow cash inflow in to the realty sector and prompt developers to build affordable housing.

Rebate in taxation

Realty sector is asking for tax exemption on interest on housing loan to be raised to Rs 3 lakh. Experts hope that under section 80 I (B) the government will give more tax rebates for the survival of the real estate sector. “Moreover, tax exemption on EMI under section 80 (C).

Majority of the buyers in real estate belong to the middle class that demand affordable homes. Therefore, affordability is a segment which should be a priority for government policy and considered for special tax rebate.

The most difficult tax to digest – Service tax, if possible to be removed, which will be major direct benefit to the end customer.

“Reduction in custom duty and taxes on the new construction technology, like precast technology or aluminum framework.

The cuts in home loan and policy rates can appear as a boon for the realty sector. “This would lead to the influx of liquidity in the market and would also lower interest rates, thus fuelling growth. Improved funds to facilitate better infrastructure development should be imperative,”

Infrastructure Funds

Larger allocation of funds to the infrastructure sector is another important aspect the government should look at. “More funds and sanction of projects to the major infrastructure sectors, such as Transportation, Affordable Housing, Renewal of Urban Infrastructure, Energy & Utilities, would certainly help the real estate of the country.”

Source : Credai Chennai