Budget 2010 : Suggest your views to FM

Union Budget will be presented on 26th February 2010 in Parliament. We at Accomodation Times sent a deliberation and recommendation to FM, briefly as follows:

1. Extent benefits under section 80 IB for houses under 1000 sq.ft.

2. Increase exemption limit of home loan interest and principle up to Rs.10 lakhs.

3. Housing Loan subsidiary for loans upto 35 lakh in urban centres.

4. Do not allow exemption for second home loan for investment purposes

5. Adminiter the price of Cement, Steel and woods used in construction activities.

6. Complete exemption of co-operative housing society income.

7. VAT, MAT and GST should not be applicable while booking under construction projects.

8. 2% tax on gross assets must not be imposed

9. Commercial lease should be treated as Income from House Property.

10. Stamp Duty and registration should be rationalised and limits must be fixed.





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6 thoughts on “Budget 2010 : Suggest your views to FM

  1. A couple of years back i had read somewhere that contruction industry affects more than 250 (two hundred and fifty )types of buisness activities directly or indirectly , today i think it might be affecting more than 250 different buisnesses , if the govt is seriouly thinking sustaining or increasing economic growth i dont think it is possible without giving stimulating packages for the constuction industry,

  2. “The current economic turmoil at the macro level has raised the expectations of the realty sector from the Union Budget 2009-10. Affordable housing is the key highlight of this year and we recommend reduction in the interest rates of home loans and other tax waivers from the government to support its growing demand. Developers need the incentive under the 80IB scheme to invest in affordable housing projects which would in turn drive urban development

    After the economic downturn, to maintain revival in the real estate market we recommend government to levy more tax holiday for housing projects under Section 80-IB(10) and tax incentives for lower- and middle-income housing projects.­­­ The budget should also decisively enable the entry of FDI into the real estate sector. We look forward to the collaborative steps by the government such as reduction in assessment charges, amendment of Rent Control Act, cuts and provisions in the license fee and the service tax to strengthen growth and infrastructural development. We have been demanding reduction in the stamp duty to 4-5 per cent for a long; now we are expecting uniformity in the stamp duty rates. Among other things, we are also expecting, the government to allow External Commercial Borrowing (ECB) in real estate and revival in the exemption of income from investment in infrastructure and other projects under section 10 (23G).” – Mr. Pravin Doshi, President, Maharashtra Chamber of Housing Industry (MCHI)

  3. MOST RESPECTFULLY I SUBMIT THAT THE INTEREST RATE FOR SINGLE FIXED DEPOSIT (LIMIT MAY BE IMPOSED) SHOULD BE MONITERED BETWEEN 8 TO 10 %, IRRESPECTIVE OF ANY CIRCUMSTANCES. IT WILL ALSO BENEFIT THOSE ELDERLY CITIZENS WHOSE BREAD AND BUTTER DEPENDS ONLY ON FIXED DEPOSITS. THANK YOU.

  4. This is with regards to the upcoming Union Budget 2010-11 and the expectations from the different sectors of India. Enclosed below are few expectations and recommendations by Mr. Sushil Mantri, Chairman and MD – Mantri Developers for the real estate sector:

    Some of the Key proposals expected from 2010 Budget :

    i. Extension of Section 80-IB Benefits – with built up areas under 1,500 Sft. – at least for next 5 financial years

    ii. Infrastructure Projects – Current tax holiday for profits from infrastructure projects (roads, highways, water supply projects, ports, airports etc.) – extend the scope to include development of integrated townships

    iii. Where projects enjoy tax holidays, MAT is applicable. Preferable that no normal corporate tax & MAT are applicable for infrastructure projects

    iv. Abolition of Service tax on commercial real estate and also on construction of residential complexes (including related activities). This would ensure that the ultimate prices of residential developments to the customer would be lower

    v. Personal Taxation – Currently the exemption limit of Rs. 1.50 Lakhs is too low. Needs to be hiked

    vi. Rationalisation of Taxes on real estate. Today real estate suffer VAT, Service Tax and Stamp Duty

    vii. ECB – external commercial borrowing regulations to be liberalised – thereby ensuring that all Press Note 2 compliant projects can avail ECB thro’ the automatic route

  5. “Food industry is the major user of metal packaging. The Metal packaging industry is facing serious problem on accumulation of credit due to inverted duty structure and supplies to merchant exporter. This results to under-utilisation of CENVAT credit, resulting into huge accumulation because of reduction of such duty. We hope that either excise duty on raw material – tinplate, should be reduced to 4% or excise duty on OTS cans should be raised to 8% at par with other metal containers falling under tariff item 73.10.21 & 73.10.29.”

    “Mr.Sanjay Bhatia actively participates in organizations like PHD Chamber of Commerce and Industry, FICCI, CII etc. He is the chairman of Indirect Taxes Committee Of PHDCCI, Member of Managing Committee-PHD Chamber of Commerce & Industry and Indian Institute of Packaging Governing Body. He is also the Vice President of Metal Container Manufacturers Association of India and All India Manufacturers Organisation (Northern Zone). ”

    CMD of Hindustan Tin Works Ltd. Mr. Sanjay Bhatia.

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