Real estate needs tax sops, low registration charges

REITs, affordable housing and single window clearance – these are some of the issues that the real estate sector participants want to be addressed in this year’s budget. In conversation with Magicbricks, Ramesh Kelkar, head-credit & risk (WL & SME), Capri Global Capital Ltd spells out his budget expectations. Capri Global Capital Limited (CGCL) is a Indian Non-Banking Finance Company (NBFC) registered with Reserve Bank of India (RBI) and listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE):

REITs and attractive tax norms:  Kelkar says that income from REIT units should be tax exempted. Denomination of unit and investment size needs to be reduced, to attract investments from small investors.

Tax Sops and reduction in registration charges: Affordable Housing needs special attention by extending tax sops both to buyers and developers. Registration charges to be reduced progressively on small houses. The Section 80C and Section 24 deductions should continue and multiple taxation and multiple clearances should be removed, or at least to be eased.

Single window clearance: Single window clearance are required to be introduced and an independent regulatory body to be established with wide powers.

Infrastructure status: Give infrastructure status to group housing and townships/mega housing projects to attract long term investments/finance to housing sector.

Foreign Direct Investments (FDI): Allow FDI in residential housing projects right at the stage of land acquisition. Many foreign funds are waiting in wings to invest in realty sector in India. Attractive tax regime and hassle free clearances will attract FDI and FIIs. This will infuse cheaper capital sector to make it more affordable.

Attractive taxation rates and administrative norms need to be introduced to attract FDI/FII funds for development of smart cities and mega affordable housing projects.

Kelkar opines that Union Government has already revealed its agenda on establishment of REITs, Affordable Housing, Smart Cities and Housing for all by 2022. Hence, this budget is expected to create conducive atmosphere for flow of investment, both domestic and foreign, in realty sector in India. The expected taxation sops and budgetary support will provide the much needed boost to realty sector.

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.