Funding in the Real Estate sector, the government is considering to provide tax incentives for some housing projects to ensure ‘Housing for All’ by 2022.The tax incentives that has been reported in the Union Budget, would focus at promoting investments in rental housing by institutional players. The draft National Urban Rental Housing Policy have urged a host of tax incentives to promote rental housing with a goal of housing for all by 2022. Real Estate is taken as an account of one of the key sectors to increase growth by increasing demand for steel, cement, besides creating additional employments. According to sources, the tax department, is looking at the save rental housing policy to ascertain the tax incentives that can be doled out to the sector to promote investments in real estate sector.
The policy has suggested fiscal incentives for house owners who will rent out the property, institutional owners wanting to set up mass rental housing and Property Tax exemption for Social Rental Housing properties. It also suggested treating rental housing stocks at par with owner occupied premises in terms of property tax treatment and calculating other utility charges such as (water, electricity, maintenance etc.)
“The Policy seeks to encourage various kinds of public-private partnerships for advertising of rental housing in the country which will act as a catalytic force to achieve the overall goal of Housing for All by 2022,”.