With the aim to provide more affordable homes to the people the union government plans to confer infrastructure status to the housing sector.
The coming budget is believed to confer infrastructure status on housing sector. The budget session will also have the plan to implement the regulatory bill as well.
Conferring infrastructure status to the housing sector will be one of the main news in the upcoming budget 2013. The budget session of the parliament may also give nod to the regulatory bill too, to enhance the real estate sector.
The skyrocketing property prices have been driving the middle and lower income class people away from owning a home. However they are filled with hopes as the government now plans to confer the infrastructure status to the housing sector.
By receiving the infrastructure status, the developers will have more tax-exemptions. Their cost of construction will be lowered as the service tax also will be taken away from the housing sector.
Builders and developers have been demanding infrastructure status to the entire real estate sector. However the union Housing Minister Ajay Maken told that the housing sector may be given infrastructure status and not the whole real estate sector.
The matter is now under the discussion of Finance Ministry and Reserve Bank of India. However the decision is believed to be taken during the coming budget session.
A senior official in the Ministry of Housing and Urban Poverty Alleviation (MHUPA) revealed that the ministry is planning to grant some tax exemptions and service tax deductions to the housing sector. He gestured for a favorable decision.
According to some recent reports, in 2012 the number of houses in the middle and lower income segment was very low. The people had been facing a shortage of houses in these segments. However the union government hopes to boost the housing sector by conferring infrastructure status.
