Budget 2013 expected to have 10% hike in residential property tax
Nashik – The budget 2013 for the upcoming financial year is expected to have a 10 percent hike in the residential property tax as suggested by the civic administration. This policy was presented to the chairman of the standing committee of the Nashik Municipal Corporation (NMC).
The decision is yet to be taken by the standing committee after a meeting but the standing committee has already approved a 10 percent hike in the commercial property tax for the next financial year. This was followed by a 25 percent hike in the commercial property tax last year for the next fiscal year.
The increase by 10 percent includes one percent hike each in sanitation, water benefit, education and road tax along with five percent tax hike in sewage benefit tax.
It was said that there were increased possibilities of increasing the property tax as there has not been a hike in residential property tax in the last 10 years.
Realty sector Tax rebate:
Talking about the tax rebate in the realty sector, the sector is expecting a tax exemption from the Budget 2013 on housing loans with an increase of 3 lakh. The realty experts predict that under the Section 80 I (B), government might increase tax rebates for the development of the realty sector.
They further said that they are seeking tax exemption on the EMI under Section 80 (C) and that service tax was seldom required by most of them. Service tax might be taken back.
Another important aspect the government should look into in Budget 2013 is the larger allocation of funds to the infrastructure. A large number of funds and sanction of projects to major infrastructure sectors like affordable housing, transportation, energy and utilities will help in the development of the realty sector.
Also the reduction of the custom duty and taxes on the new construction technologies is expected in the Budget 2013.
Related Real Estate News:
FICCI wants industry status for realty sector in Budget 2013
Real estate expectations from budget 2013-14
Budget-2013, hike in the commercial property tax, hike in the residential property tax, Nashik, Nashik Municipal Corporation ( NMC), rebate in the realty sector, sewage benefit tax, upcoming financial year
