Realty sector wants industry status in Budget
Real estate developers feel the sector has been under-represented in the budgets.
New Delhi: Real estate developers feel the sector has been under represented in the Union Budget over the years. The grievance of the sector is that the sector which provides the maximum to the GDP and is the second largest employment provider, is not given due importance in successive Union Budget.
In a survey carried real estate market tracker Track2Realty among 100 realty companies about 88 per cent assert that if steps are taken for the growth of the industry then related industries which includes steel, cement, electronic, infrastructure, hospitality, industrial development, banking will benefit.
The growth of realty sector will also increase the employment in the country, according to the survey. The survey was conducted between January 12 and February 7.
The developers want that the sector be given industry status, remove the anomaly of levying both the sales and service tax on the real estate industry.
Realty companies point out that the Delhi High court had termed the levy of service tax in addition to the sales tax as "illegal". They also says that if real estate is a "product" then it can attract sales tax and if it is a "service" then a service tax is applicable.
The realtors say if in Budget 2011 Finance Minister Pranab Mukherjee can remove either of the two the same will help the developers leverage the benefit to the consumer in the same proportion.
Another wish list is to increase the deduction benefit on interest on housing loan from existing Rs 1,50,000 to Rs 3,00,000; increase the deduction under Section 80C for repayment of housing loan.
They also want reduction in excise duty on steel, RMC, and cement to reduce the construction cost and to promote redevelopment of old and dilapidated buildings more than 50 years old. Moreover, they want tax benefits/concessions be given to the developers.
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