Rajahmundry: Builders for exemption from capital gain tax
Demand reduction of stamp duty, hike in housing loan.
RAJAHMUNDRY: In a bid to revive the housing industry which is facing crisis in the aftermath of demonetisation, the builders made a fervent appeal to both the Centre and state government to come up with a series of initiatives.
They cautioned that if they fail to do so, it will affect as many as 264 industries linked to it resulting in no new investment and no job creation and loss of existing jobs in the state. The builders demand exemption from capital gain tax which is being imposed by the income tax department.
They say that as the possession of the land changes from buyer to buyer over a period of time, the IT imposes capital gain tax on it. They say that if any exemption is given from payment of capital gain tax, they will transfer the benefit to the prospective buyers and this will help especially the middle income group people to own a flat at relatively cheap cost.
The builders are demanding the state government to reduce stamp duty to either one per cent or two per cent from the present 7.5 per cent as it will have no major impact on revenue to the state exchequer.
They want the value of the land to be up and enhancement in registration value of the land nearer to the prevailing market value as this will help the buyer to get benefit instead of registering the land at low price and paying huge amount of money to the seller.
They appeal to the bankers to enhance the housing loan amount in priority sector to Rs 50 lakh from the present Rs 30 lakh and lay stress to bring down the rate of interest on housing loan as it will help a good number of people raise loans from the bank and own a house.
Confederation of Real Estate Developers' Association of India AP Chapter treasurer Budd-iga Srinivas said, “The prevailing atmosphere in the market for the housing industry is no longer conducive as the Centre wants every paisa to be spent needs to be white and unless both the Centre and state government pay attention to the industry and solve the issues, it will collapse.”
“The builders are hurrying up to close the ongoing ventures and we are no longer interested to go for a new venture as it will no longer be profitable. We urge for calling for a meet with all stakeholders and come up with a new policy to promote housing industry,” Mr Buddiga Srinivas added.