Industry bodies have also demanded a further widening of the definition of affordable housing.
Confederation of Real Estate Developers' Associations of India (CREDAI) has suggested that unit with carpet area as defined under RERA may be redefined as 'that does not exceed 90 square metre in the metros and 120 square metre elsewhere'.
Currently, residential units in metro cities with 60 square metres of carpet area and in non-metro cities residential units with 90 square metres of carpet area are considered as affordable housing.
Tax reforms sought by the developers include the demand for allowing interest on housing loans to be considered under Income Tax Deduction without any ceiling.
The current limit of interest deduction under Section 24 of IT Act 1961 on housing loan of Rs 2 lakh should be removed to incentivise home buyers and spurring overall demand, NAREDCO has recommended.
"Also, loss from house property should be fully allowed to be adjusted against other heads of income. In case of unadjusted loss, it should be fully allowed to be carried forward to subsequent years," it said.
It has also recommended that Long term Capital Gains from sale of housing property should be taxed at 10 per cent as the provision similar to section 112 for equity shares. Also, period of holding of house property should be reduced to 12 months from existing 24/36 months to qualify the same as Long term Capital asset.
CREDAI is of the view that REITs are one way of solving the liquidity problem in real estate and it also offers the investors a choice to diversify their portfolio.
It has suggested an extension of exemption under Section 80C to investments in REITs starting with Rs 50,000.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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