Affordable homes may get tax boost

Feb 25 2013, 12:45 IST
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SummaryAffordable housing sector may get a fillip in the Union Budget for 2013-14 as the finance ministry is favouring some of the proposals made by the housing and urban poverty alleviation ministry for extending income-tax breaks for investors in this business.

Also, the total housing loan outstanding in the country is pegged at about Rs 3.06 lakh crore, of which only about 24% is towards loans up to Rs 5 lakh, which are mostly taken by economically weaker sections and low-income groups.

The establishment of a government-supported Credit Risk Guarantee Fund will facilitate credit enablement of the urban poor as well as flow of institutional finance for affordable housing, HUPA has recommended.

Maken said that government is for active consideration of giving infrastructure status to the sector. Recently, Maken wrote to Chidambaram detailing the issues that need to be addressed in the sector. HUPA has also sought creation of commercial real estate (housing) guidelines by the RBI. Currently, the housing sector under RBI guidelines is treated at par with the commercial real estate category.

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