CREDAI - need of stamp duty exemption for housing!

Property Laws in India have been carried to a point where there is a need of several modifications in laws affecting property transactions and consequently development process in various sectors.

In keeping with its promise to promote low cost housing across India, the Government should offer exemption in excise duty on building raw material besides urging states to exempt first time housing buyers from stamp duty, an apex body of real estate developers said keeping in mind the existing immovable property laws in India In a pre budget memorandum submitted to the Finance Ministry, Confederation of Real Estate Developer's Associations of India (CREDAI) said that on the pattern of Special Economic Zones, the Government should offer exemption from Excise and Sales Tax on the building raw material and from Stamp Duty (on first allotment) for slum area development and low cost housing projects. It stated that high stamp duty rates in many states were adversely affecting the housing sector. At present, the states are charging up to 15 per cent of stamp duty on the transfer of property, leading to rise in prices. The builders’ body also demanded exemption from service tax for builders developing projects on their own account. CREDAI suggested that rental housing stock investment allowance at 20 per cent, rental income from newly constructed houses with area of each unit not exceeding 150 sqm be completely exempted from income tax for first five years and at the rate of 50 per cent for next 5 years. So guys, has now the time come for actual amendments in Indian real estate laws keeping in mind the need of development of various areas. I think our governmental authorities should now think of all these aspects of development too.