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2008-09
(Feb 8, 2008)
Real estate industry, forming the second greatest employment provider in India after agriculture has lots of anticipations from the upcoming Union Budget 2008-09. The demands of this sector are as follows:
- Reduction of service tax along with the modification of entire
income tax structure for real estate industry.
- The industry anticipates the introduction of sectoral concepts
such as rental housing, and real estate investment trusts (REITs) in
order to allow housing more easy and affordable for common man along
with raising more funds.
- The Confederation of Real Estate Developers’ Association of
India (CREDAI), has demanded from government to reconsider various
sections like 80-IB(10) of the Income Tax Act. They have also asked
the government to step down various levels of taxation at Centre and
State governments.
- In order to encourage foreign investors and developers to invest
in Indian real estate markets, they are stressing on to decrease the
threshold of FDI below 50,000 sq metres.
- The real estate industry also wants government to start up
certain fund- raising systems for the industry.
- Removal of restriction put up on borrowing programmes such as ECB as it is still not clear if realty firms can tap GDR/ ADR market.
