New Delhi, Feb 24, 2015:
“Last year, real estate sector got much needed attention in budget and got important announcement such as pass through of taxes for REITs, changes in FDI policy and tax incentives for end consumers. Although these changes have impacted the sector positively, to realize the actual benefit of these changes the sector expects few more initiatives. For example for success it is essential for REITs to be tax efficient. The sector is hoping for removal of dividend distribution tax on distribution of profits by SPV to REITS, removal of TDS on distribution of income by business trust non-residents and exemption from stamp duty on transfer of asset to REITs. Post- election we are yet to see the lift in consumer sentiment translate to a sustained boost in residential sales. Restrained sales turnover growth continued to put pressure on developers and in turn residential property owners. The industry is also looking for increase in deduction available under Section 24 to at least INR 300,000 and increase in limit for deduction for principal repayment to boost the residential sales. Moreover, recently, the government expressed their intent to revive special economic zones and also issued some procedural level changes to simplify the process of setting up a unit in SEZ, however, industry expect removal of the Minimum Alternative Tax imposed on SEZ which is making it unattractive for units to set up their shop.”CCI Newswire
