Union Budget 2019: Realtors body NAREDCO calls for boost to rental housing through incentives like 10-year tax holiday

Realtors body NAREDCO has demanded a boost to rental housing in the upcoming budget from the government through incentives like 10-year tax holiday to real estate developers on the profit earned from the business

Press Trust of India June 18, 2019 15:13:33 IST
Union Budget 2019: Realtors body NAREDCO calls for boost to rental housing through incentives like 10-year tax holiday
  • In its budget wish-list, NAREDCO has recommended various incentives to promote rental housing in a big way

  • It suggested that 10-year tax holiday be given to real estate developers on profits earned from rental housing

  • That apart, the association sought deduction on expenses like interest and brokerage

New Delhi: Realtors body NAREDCO has demanded a boost to rental housing in the upcoming budget from the government through incentives like 10-year tax holiday to real estate developers on the profit earned from the business.

"In view of the housing shortage in the country and the objective 'Housing for All by 2022' as also in view of the fact that all cannot afford ownership housing, we need to give a big boost to 'Rental Housing'," NAREDCO President Niranjan Hiranandani said.

In its budget wish-list, NAREDCO has recommended various incentives to promote rental housing in a big way.

Union Budget 2019 Realtors body NAREDCO calls for boost to rental housing through incentives like 10year tax holiday

Representational image. Reuters

It suggested that 10-year tax holiday be given to real estate developers on profits earned from rental housing.

That apart, the association sought deduction on expenses like interest and brokerage.

As customers prefer fully-furnished flats, NAREDCO said depreciation should be allowed on furniture and fixtures as well as on apartments.

"High cost of houses and high property taxes lead to a low rate of return (ROR) from rental housing, making renting out an un-remunerative proposition.

"To improve the effective ROR from renting, it is suggested that the deduction from rental income under Section 24(a) be increased from 30 per cent to 50 per cent. This will promote rental housing," NAREDCO said.

The association also said that the goods and services tax on maintenance charges of residential complexes should be totally exempted.

CREDAI and NAREDCO are the two main associations of real estate developers across the country.

Follow full coverage of Union Budget 2019-20 here

Updated Date:

also read

White House appoints 19 fellow, including three Indian Americans
World

White House appoints 19 fellow, including three Indian Americans

Indian Americans who made it to the list are Joy Basu and Sunny Patel from California; and Aakash Shah from New Jersey.

Nirmala Sitharaman, Janet Yellen discuss ways to step up bilateral ties at India-USA Economic and Financial Partnership meet
World

Nirmala Sitharaman, Janet Yellen discuss ways to step up bilateral ties at India-USA Economic and Financial Partnership meet

The finance minister and her American counterpart discussed ways to enhance bilateral cooperation in fighting illicit finance, money laundering and terror financing

'Absolute baseless': Finance minister Nirmala Sitharaman rubbishes reports of coal shortage in India
India

'Absolute baseless': Finance minister Nirmala Sitharaman rubbishes reports of coal shortage in India

“There are not going to be any deficiencies which may lead to any shortfall of supply. So that takes care of India's power situation. We are now a power surplus country," added Sitharaman.