Monday, February 29, 2016

BWI: "Budget Promotes Affordable Housing" - Mr. Praveen Jain, President, NAREDCO

Source : National Real Estate Development Council (NAREDCO)
Monday, February 29, 2016 6:28PM IST (12:58PM GMT)
"Budget Promotes Affordable Housing" - Mr. Praveen Jain, President, NAREDCO
New Delhi, Delhi, India

National Real Estate Development Council (NAREDCO) welcomed the Budget as growth-oriented which will provide impetus to agriculture, infrastructure and rural sector development, besides providing incentive to affordable housing by allowing 100% deduction for profits to an undertaking from a housing project for flats upto 30 sq. mtr in four metro cities and 60 sq. mtr in other cities, approved during June 2016 to March 2019 and is completed within three years of approval, allowing Rs. 50,000/- additional deduction of interest on home loan for loans upto Rs. 35 lakh sanctioned during next fiscal year, for first time home buyers, provided the value of house does not exceed Rs. 50 lakh and exempting Service Tax on Construction of affordable houses upto 60 sq. mtr under any scheme of Central or State Govt. including PPP. Another proposal to stimulate housing activity in the budget is to facilitate investment in Real Estate Investment Trust (REIT) by disallowing DDT.
Deductions provided on profit from Construction of affordable houses upto 60 sq. mtr carpet area and home loan interest for first time home buyers would boost depressed housing sector, said Shri Parveen Jain, President, NAREDCO, adding that scrapping of Dividend Distribution Tax (DDT) on income distributed to Real Estate Investment Trusts (REITs) and INVITs make investments attractive for investors. Popular investment tool the world over, REITs works similar to mutual funds where individuals and institutions pool in money to invest in leased office or retail assets.

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