'Essential to provide tax benefits for housing sector in Budget'

Naredco chairman says has recommended the reintroduction of tax benefit under Section 80-1B(10) of the Income Tax Act for the housing sector

With about a month left for the announcement of the general budget proposals for fiscal 2015-16, representatives of key sectors have taken it upon themselves to forward their recommendations to Union Finance Ministry and its Minister Arun Jaitley.

Rohtas Goel, the Chairman of the Advisory Council of the National Real Estate Development Council (Naredco) and Chairman of Omaxe Limited, is one of these representatives.

Representing the housing sector, Goel has recommended the reintroduction of tax benefit under Section 80-1B(10) of the Income Tax Act for the housing sector up to the basic selling price of Rs 60 lakh in order to give a boost to the housing sector and to realise the dream of Prime Minister Narendra Modi for providing housing for all by 2022.

Goel further stated that Section 80-IB(10) of the I.T. Act should be extended to the part of the project with 1,000 square feet residential units in metro cities with a cap of basic selling price of Rs.60 lakh and 1500 sqft built up area in non-metro cities with a cap of basic selling price of Rs.60 lakh for easier flow of credit and to provide affordable housing to the common man.

Goel also requested the government to withdraw Section 43 CA of Income Tax Act, which was introduced by the previous government in 2013. and demanded that market rates should be basis for calculating dues instead of government-fixed circle rates, which were much higher and causing undue hardship to both home buyers and real estate developers.

He also claimed that the sale and purchase of housing has been affected by the application of Section 43 CA.

He called for a balanced approach on the adoption of the Real Estate (Regulation and Development) Bill by addressing the concerns of the developers, like the accountability of the development authorities, and cautioned that half-baked regulations create more problems, rather than removing them.

Goel said that the City Master Plan should only be notified after all statutory approvals like Change in Land Use, Environment Clearance, Mining, Maximum Height from AAI etc are in place, so that the developer is able to start his work in the minimum possible time.

He said that in order to enhance the "Ease of doing Business", the Bill should eradicate grey areas and discretionary powers, and nothing should be left for the imagination of approving authority.

He said that the developing authorities, with the active support of NAREDCO or CREDAI, can develop a software, wherein, all approvals, including building plans, can be filled and approved Online without human interface.