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Follow on Google News | Realty Sector Wants Tax Breaks To Boost Cheaper Housing ProjectIndia's real estate sector wants larger tax breaks for new homes, especially for the largely untapped, middle-income and cheaper projects, to spur sales.The housing sector, the largest revenue contributor by far for real estate developers in India
By: maaproperties LENDING:Mortgage lenders want an increase in the bracket for tax concessions on housing loans to 250,000 rupees. Tax payers now get a relief of up to 150,000 rupees for interest payments.Analysts say that this will help spur demand and benefit buyers as well as help boost sales for the industry.A separate tax relief for capital repayment should be provided for, R.R. Nair, chief executive, LIC Housing Finance, said.Besides the relief to consumers, the government needs to increase the tax exemption limit to mortgage lenders.Kapil Wadhawan, managing director of Dewan Housing Finance, said the exemption limit for a tax free reserve should be raised to 40 percent of the pre tax profits or revenue. The exemption was slashed to 20 percent 2 years ago."I think one way (to) actually pass on the benefits to the customers is to reduce the base of interest instead of tinkering too much with individual tax slabs," he said. However, demands on exemptions may not be answered, analysts point out. "Their margins are fairly high, they're higher than software, so why (should they) get benefits," Shailesh Kanani an analyst at Angel Broking.The companies also want tax relief for five year deposits like that given to banks, Wadhawan said, adding this would help raise cheap long term funds.Cheaper funds need to reach National Housing Bank, the state-run funding agency for housing firms, to lend to housing finance companies at lower rates, he said. .........http://www.maaproperties.com/ At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home. We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI) # # # Maa properties provides property related transactions in Hyderabad like buy, sell, rent, lease, providing tenants, maintenance for nris under three services property deals, property analysis and property care. End
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