Wednesday, July 01, 2009

Expectations for upcoming budget from Industry

Here is the wish list of Indian Real Estate Developers from the Finance Minister, Mr. Pranab Mukherjee for the forthcoming budget.

1.Reintroduce tax holiday for mass housing under Sec 80 (IB)
2. Tax holiday available to hotels under section 80ID to be extended 10 years from existing 5 yrs. Gestation period in hotel industry, itself, stretches from 4 to 5 yrs.
3. Re-introduce 'tax pass through' status for domestic venture capital funds that invest in the Indian real estate sector
4. Clarity on regulations/taxation on real estate mutual funds (REMFs)
5. Extend the external commercial borrowing scheme to the entire Indian real estate sector
6. Encourage states to reduce stamp duty to 5% and to provide a system of credit for each stage of sale i.e. levy on value addition.
7. Increase the tax break on home loan interest under section 24(b) to Rs 300,000 from the existing limit of Rs 150,000 for self occupied houses.
8. Service tax on renting immovable property should be abolished
9. Reduction/ rationalization of customs duty (exemption from special additional duty) and excise duty (8% to 4%)
10. Extension of STPI clause. Current deadline expires by Mar-10.
11. Introduction of a real estate regulator

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