Rental Housing push needed urgently
Considering the housing shortage in the country, a big boost to ‘rental housing’ concept is the need of the hour. The same can be promoted in several ways. CREDAI is expecting three major things from budget. Their demands include a flat 10 percent tax on income from renting of properties and services of property management firms and deduction from rental income under section 24 (a) be increased to 50%.
Currently, Section 80-IA (infrastructure status to housing sector) of Income-Tax Act says that where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any of the business referred to in sub-section (4), then a deduction equal to 100% of the profits and gains derived from such business shall be allowed for ten consecutive assessment years, says a senior official of Credai.
Credai also recommends setting up of a dedicated affordable housing fund like the infrastructure fund exclusively for construction of EWS/LIG housing and lending it to developers at low rate of interest. Another important demand from CREDAI is that the investment in housing finance institutions (HFIs) should be an eligible investment for pension funds, insurance funds and provident funds.
Source: The Times of India
affordable housing fund, Budget 2014, CREDAI, EWS/LIG housing, HFIs, housing shortage in the country, Income Tax Act, infrastructure status to housing sector, insurance funds and provident funds., in housing finance institutions, pension funds, property management firms, rental housing, rental income, renting of properties, Section 80-IA
