By Accommodation Times News Service
The Ministry of Housing and Urban Poverty Alleviation has asked the Finance Ministry to discount on tax and service tax to the real estate developers under the section 80IB (10). This relief will be only for the affordable housing projects and to those builders who are making affordability come true. According to the law of tax 80IB (10) these discount are only given to those developers whose projects are approved before 31st march 2008 but if they don’t complete the projects before 31st March 2013, the benefits will be not applied to them. The Ministry has requested to extend the deadline for one year and also for the projects that are approved after the 31st march.
Today the idea of affordable housing is catching the realty industry and everybody is working towards it. There are many projects coming up under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) and Rajeev Awas Yojana (RAY), also the state government is trying hard under slum rehabilitation schemes to promote affordable housing. Today the real estate industry is in major crises, suffering from heavy liquidity; also he banks are imposing many laws on the developers. To improve the somewhat condition the Ministry of Housing Ajay Maken suggested the idea of tax reduction. In all the affordable housing has become one unregulated slogan for the metros and sub- metros city.