Ajay Maken proposes new norms for realty sector
The housing and urban poverty alleviation ministry (HUPA) minister Ajay Maken presented a new proposal requesting infrastructure status for housing sector and one-year extension of tax relief under Section 80-IB.
HUPA asked he infrastructure status for the housing sector under Section 80IA of the income tax Act. The extension of the exemption for the service tax to all categories of affordable housing should also be approved, says HUPA.
Few current projects like JNNURM, Rajiv Awas Yojana, affordable housing partnership and other slum areas will come under the schemes of the state government as they all will be eligible for this tax exemption.
Even recently all the commercial estate are treated as per the guidelines of the Reserve bank of India (RBI) as the HUPA ministry has separated the commercial and housing sector. In the proposal, it is also mentioned to bring in changes in the priority sector lending (PSL) norms. For now, the housing loans which comes up to 25 lakh has been designated as the priority sector lending, so Maken has asked to separate and create a sub group of the loan up to Rs 5 lakh.
This also highlights the deployment of the gross bank credit in the housing sector which has increased and needs to be channelised. According to the sources of HUPA, there should be earmarking of at least three percent of the PSL in the housing loans which are up to Rs 5 lakh, especially for the weaker and low income groups.
After all the changes and re structure of this laws and regulation , the sector will revive from the present position.
Click here for related forum discussion
Related Real Estate News:
Real Estate demands tax modification in Budget 2012
Housing ministry seeks tax sops for affordable projects
Image courtesy of graur razvan ionut at FreeDigitalPhotos.net
Commercial real estate, house tax, Infrastructure status, infrastructure status for housing sector, propertytax, Real estate in India, Real Estate India, real estate service tax, Real estate tax, realestate, Realty, Realty News, tax on real estate sale
