By Accommodation Times News Services
Heavy taxation on real estate transaction is killing the dream of the government to house all by 2022. The taxes on buyer which includes
Development Charges by Local Self Government
Income Tax as Capital Gain Tax
Property Tax by Local Self Government
Maintenance Charges and recurring cost
Work Contract Tax
Other Indirect Taxes
Real Estate industry have become milking cow to the government / state governments as maximum amount of tax are imposed on real estate transactions. Union Budget after Union Budget, no allocation for urban poor or any tax relief given to poor home buyers. The industry and buyers are looking in anticipation at government to ease the taxes on real estate to make it little affordable. Builders want tax holidays, buyers want total waiver of any taxes on real estate.
The Government needs to put in place the single window clearance for projects asserts Chintan Sheth, Director Sheth Group. Granting of infrastructure status to projects will attract large companies to the sector and inculcate corporate Governance. For the sake of convenience and uniformity in law, the ‘built up area’ in the Income Tax Act should be replaced by the ‘carpet area’ as defined in the Real Estate (Regulation and Development) Act 2016, said NAREDCO President Mr Praveen Jain.