The real estate sector can get some tax concessions from the government. The government’s Think Tank Organization policy commission is working with the Urban Development Ministry to create a policy that is considering some incentives for real estate going through recession. These promotions will be in the form of exemptions in direct taxes and commodity and service tax (GST). The suggestion has been sent to the finance ministry.
This decision was taken last week after a meeting chaired by Urban Development Minister Hardeep Singh Puri. In this meeting, senior directors of the banks and housing finance organizations, direct and indirect tax authorities, RERA (Real Estate Regulation Act), senior officials of the states and senior officials of the Policy Commission were present. After the GST rates ranging from 28% to 18% on paint and varnish, the policy commission has also recommended to cut rates for cement. Apart from this, the commission has suggested to bring the stamp duty to the realm of GST.
A government officer said, “Reduction of paint rates will lead to building construction. Now, the rate of GST should also be reduced from 28% to 18% on cement. Employment generation is very large in the construction sector and the government should pay attention to it. “The policy-fixer think tank is demanded to increased the limit of existing Rs 2,00,000 to Rs 3,50,000 on income on home loan interest. A statement by the Policy Commission said, “The limit of Rs. 2,00,000 can be increased to Rs. 3,50,000 as this step has been announced recently by the RBI, under the prominent credit for the affordable housing, the revised housing loan is favorable. Will happen. He has also suggested that this deduction should be allowed even during the construction period. He has recommended ending the minimum alternate tax (MAT). He has said that high rates of MAT have neutralized the benefits of various tax plans promoting the real estate sector.
An officer said, “The real estate sector is unorganized, highly classified and localized. Continuity can not be guaranteed in this area as in other areas. Therefore, in most cases MAT credit is not taken advantage of. Therefore, for the next few years, the provision of MAT should be abolished in this area. “He has also raised the stamp duty to keep it within the purview of GST. The council had certainly made an effort to incorporate it into consideration but there has not been any discussion in this regard so far.