The Sahara India group has said that the pent-up demand for affordable housing in the country should be given top priority.
CEO, Sahara Prime City, Sushanto Roy said that to address the demand for affordable housing, the forthcoming budget should reintroduce tax holiday under section 80 IB for housing projects constructed after 31 March, 2008.
The real estate sector favoured an upward revision of tax exemption to Rs 3 lakhs compared to the existing limit of Rs 1.50 lakhs available on housing loan interest payment under section 24 (b) of IT Act, which would help boost demand for residential units.
He said that the tax holiday for hotels, under section 80 ID should be extended to 10 years from existing time limit of 5 years, in view of the long standing gestation period for the industry.
Early resolution and clarification on pending issues related to Real Estate Mutual Funds and Real Estate Investment Trust, should also be brought about said Sushanto Roy.
The Economic Times