The current economic turmoil at the macro level has raised the expectations of the realty sector from the Union Budget 2009-10. Affordable housing is the key highlight of this year and we recommend reduction in the interest rates of home loans and other tax waivers from the government to support its growing demand. Developers need the incentive under the 80IB scheme to invest in affordable housing projects which would in turn drive urban development After the economic downturn, to maintain revival in the real estate market we recommend government to levy more tax holiday for housing projects under Section 80-IB(10) and tax incentives for lower- and middle-income housing projects. The budget should also decisively enable the entry of FDI into the real estate sector. We look forward to the collaborative steps by the government such as reduction in assessment charges, amendment of Rent Control Act, cuts and provisions in the license fee and the service tax to strengthen growth and infrastructural development. We have been demanding reduction in the stamp duty to 4-5 per cent for a long; now we are expecting uniformity in the stamp duty rates. Among other things, we are also expecting, the government to allow External Commercial Borrowing (ECB) in real estate and revival in the exemption of income from investment in infrastructure and other projects under section 10 (23G).Mr. Pravin Doshi, President, Maharashtra Chamber of Housing Industry (MCHI)
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