Published & Updated as on - 2010-02-17
In a bid to cash in on the upturn in the economy, Indian and
foreign realty players are seeking rationalisation of floor space index in
metros and Tier-II and -III cities. Their demand is that FSI should be in line
with export benefits for the sale of residential properties to NRIs and
foreigners. They also want the reinstatement of tax concessions under Section
80 I(B) to developers for expediting affordable housing projects. Mr Daniel
Ringelstein, director, Skidmore, Owings & Merrill recommended that India
could explore an option of coming up with a real estate investment trust like
the US to provide funds for the real estate sector and also give further tax
sops. He said an REIT was a tax designation for a corporation investing in real
estate that reduced or eliminated corporate income taxes. REITs were required
to distribute 90 per cent of their income, which may be taxable, to investors.
"India can seriously consider this option at a time when the realty sector
is looking up," he noted.
8 Feb 2010 Business
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