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(From L to R) Santosh Rungta, president, Credai and Kumar Gera, chairman, Credai

While defining its outlook and vision for the Indian real estate sector at a recent meeting, Confederation of Real Estate Developers’ Associations of India (Credai) has appealed to initiate public-private partnership (PPP) in low income housing. It is hoping that the government will provide its land bank to the developers for this purpose.

Credai will soon take a proposal in this regard to the government. It will also propose the removal service tax on rentals of commercial properties.

Emphasising on the importance of realty, Kumar Gera, chairman, Credai said: “It shall be our endeavour to suggest the government to formulate policies like separate fast track funding mechanism for affordable housing projects, increase in the limit of housing loan under Section 24 (b) from Rs. 1.5 lacs to at least Rs. 3 lacs etc., and reduction of taxes in the entire life cycle of development.”

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Santosh Rungta, president, Credai said: “Credai vision would be to impress upon the government to frame policies which will motivate home buyers to start acquiring residential units and at the same time provide incentives to the developers to make investments in realty. All home loans should be made available at interest rate of 5-7% and for EWS & LIG at 3%. Hundred percent rental income should be exempted from income tax for the first three years, if the built up space is purchased in the next six month.”

Credai would also pursue the introduction of value added stamp duty for housing. Accordingly, any stamp duty paid towards land purchase will be adjusted from the stamp duty paid at the time of property sale.