Give incentives to developers to make housing more affordable
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One of the sectors that have been severely impacted by the global economic downturn has been the Indian real estate sector. In the past 12 to 18 months, the sector has experienced liquidity crunch coupled with slowdown in demand. Though in the past month or so, there have been some signs of a revival; there is a clear need for the Government to provide additional stimulus to the sector to put it back on the growth path. In view of demand for affordable housing and Government focus on the segment, there is a need to incentivise developers to meet this demand, which could be well achieved through reintroduction of the tax holiday under section 80IB. Similarly, the period of tax holiday for newly constructed hotels under section 80ID should be increased to ten years from 5 years, keeping in view the long gestation period for hotels. From an....
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Gaurav Karnik is a senior tax professional with Ernst & Young, India
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