Finance Ministry of India can give relief to the real estate developer
USNMix Report: The Finance Ministry can give relief to the real estate developer,
this is planning.
this is planning.
The Finance Ministry can consider giving a 10-year tax holiday to the real estate companies on the benefits received from rent for the houses. The proposal can be considered with the intent to bring the return on investment and speed up the economy. Sources told this information.
In a recent meeting with the senior officials of the Ministry of Finance, real estate companies were asked to suggest measures to overcome challenges before the region.
The tax will be exempt from tax for 10 years
He was asked to give a note on the house rent business model in which the expenditure would be allowed to be kept as a claim for deduction. At the same time tax will be exempt from tax for 10 years. For the past few years, the investment business in the country has come down from 36 percent of GDP to 29 percent and the Finance Ministry believes that the main reasons for this decline are softening in the real estate sector. Ministry has already started discussions with the industry chambers to prepare for 2019-20 budget.
The budget is likely to be presented in July. In order to increase the demand in the sector, GST Council has reduced rates of tax on non-input tax credits to 1% and 5% for other projects related to affordable houses. At the same time with an input tax credit, it is 8 percent to 12 percent, respectively. Builders are the option of choosing one of the old and new rates of tax in relation to the provisions under construction. Its purpose is to address the issues of input tax credit.
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- 29, May, 2019
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