NEW DELHI, FEBRUARY 29: Finance minister Yashwant Sinha has continued thethrust given to the housing sector last year extending a number of benefitsto it as per Vajpayee-led coalition government's agenda under `Housing forall' in urban and rural areas.He has proposed extension of the period for the concessionary benefits fordeduction of interest payment by Rs 75,000 for self-occupied houses fromMarch 2001-03 leading to increased flow of finance to the sector.
In view of the increased cost of the housing, he has removed the ceilinglimit of Rs 10,000 on repayment of housing loans which has been increased toRs 20,000 under section 88 of the Income-Tax Act.
The finance minister has also promised to remove interest tax on long-termcapital gains if the capital gain from transfer of capital assets isinvested in a house.
Removal of restriction will enable the taxpayers to make investment in a newhouse and claim exemption from capital gains tax on sale of capital assets.The interest tax was reduced from 3 per cent to 2 per cent during 1998 andwas left at that level in 1999.
In rural areas, 25 lakh dwelling units would be constructed during the nextfiscal.
Presenting the Union Budget for 2000-2001 in the Lok Sabha, he said 12 lakhhouses at a cost of Rs 1,501 crore would be constructed under the IndiraAwas Yojana.
He said Rs 92 crore was provided in the budget for construction of one lakhhouses under the credit-cum-subsidy scheme for families with an annualincome below Rs 32,000 per annum.
The minister said the National Housing Bank (NHB) would provide re-financefor construction of 1.5 lakh houses under the Golden Jubilee rural housingfinance to construct about nine lakh houses in rural areas during the comingfinancial year.
He has also announced infusion of an additional equity infusion of Rs 280crore to the Housing and Urban Development Corporation (Hudco) for 2000-2001.The gesture would help in giving an impetus for the much needed urbanhousing programmes and alos the city infrastructure requirements.
Another important step announced by the finanace minister relates toextension of the benefit of section 10 (23G) granting income-tax exemptionto sewage treatment plant and solid waste management projects to financialinstitutions making investment in the long gestation period projects. Another 1.5 lakh houses would be funded through thecooperative sector and voluntary agencies. u
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