Mr. Sunil Mantri – Chairman, Sunil Mantri group

2010 – Budget Expectation
1. 80 IB Tax benefit continuation
Tax benefit under 80 IB expired in March 2007 which had actually boost the housing activity to a very great extent. This also resulted into creation of small houses / budget houses / affordable houses, which was the mission of the Government . I hope that the Government will continue the tax benefit under 80 IB to create huge housing stock particularly in budget size across the country. This may help in the creation of approximately 10 mn housing in 5-7 years time, which is almost 50% of the Government housing shortage as on date.

2. Lending to Developers for priority sector homes
Presently, retail customer for a loan up to Rs.30 Lacs is being treated as priority sector. However, Developers who are undertaking such projects under priority loan are not treated as a priority segment which will help serve, particularly the low income / middle income group. It will boost huge creation of the affordable housing if loans to these projects are considered on priority.

3. Rental as tax free
In the European countries, 80% of the houses is created on the rental housing model. Contrary to this, in India the market is hardly 20%. If this market is required to be boosted in the period for the initial construction time, those whose income has not increased, at least can have their own rental housing. At present Charitable Trusts, Public Trusts, High Networth Individuals (HNI), Companies having surplus cash flow are depositing their entire money in the banking system. If the rental housing and the rental house project is given tax free shelter, huge number of rental housing across India can be created. If this concession is given, it will boost rental housing across India in all the segments and at least 2-5 mn rental housing can be created which is almost 10%-20% of housing shortage in India in a span of 5-7 years. The funds, REIT and REMF will also invest in this sector.

4. Residential SEZ
SEZ creation has boosted a lot of activity in the industrial and production centres. In a similar way, if affordable housing for residential SEZ can be created on the large sizes of the project which is above 25 acres, it will reduce substantially the construction costs as well as help in creating satellite townships which will reduce the burden and pressure on the cities. Only government needs to give SEZ concession (which would be called Residential SEZ) and would create a large number of the houses across the country.

5. Sale to NRIs / Foreigners to be treated as Exports
At present the Sales to NRIs and foreigners is having no incentive when receipts come. If the same is treated at par with the Hotel industry and categorised as Export Income, it will boost huge investment of the NRI / Foreigner in India. At present European and American markets are very, very attractive for non resident Indians, gulf residents and foreigners to invest their money. If we create this incentive it will benefit the Developer to focus more on the NRI sales and attract more foreign investment in terms of $s throughout the country. This will create huge employment particularly for the Indian manpower industry as well.

6. 100% Tax deduction on interest paid on the houses
At present the interest paid on housing loan is deducted up to a limit of Rs.1.5 Lacs which is very small and only covers a house of up to Rs.5 Lacs. If the entire interest paid on the housing property is exempted from the compensation of the income, it will boost huge investment in the housing sector. This is a long overdue demand and Government needs to consider at least extending the limit of the concession slab up to Rs. 5 Lacs from the present Rs.1.5 Lacs per Assessee.
Mr. Sunil Mantri – Chairman, Sunil Mantri group