WHAT CAN BRING THE COST OF CAPITAL DOWN TO AFFORDABLE LEVELS?
Given the pent-up demand for affordable housing, which was discovered during the recent slowdown, there is certainly a need to reintroduce tax holiday under section 80IB for housing projects that have been constructed after March 31, 2008.
Even tax holiday for hotels, under section 80ID should be extended to ten years from existing time limit of five years, in view of the long gestation period for the industry. Apart from that, the pending issues related to Real Estate Mutual Funds (REMF) and Real Estate Investment Trust (REIT) should be resolved and clarified on an urgent basis by the government.
I also hope that the Hon’ble Finance Minister will extend the benefit of external commercial borrowing (ECB) scheme to the entire Indian real estate sector under automatic route including Special Economic Zones (SEZ) and not just to the development of townships, hotels, hospitals, with a view to benefit from low costs of borrowing internationally.
Even tax holiday for hotels, under section 80ID should be extended to ten years from existing time limit of five years, in view of the long gestation period for the industry. Apart from that, the pending issues related to Real Estate Mutual Funds (REMF) and Real Estate Investment Trust (REIT) should be resolved and clarified on an urgent basis by the government.
I also hope that the Hon’ble Finance Minister will extend the benefit of external commercial borrowing (ECB) scheme to the entire Indian real estate sector under automatic route including Special Economic Zones (SEZ) and not just to the development of townships, hotels, hospitals, with a view to benefit from low costs of borrowing internationally.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
