Realtors Make A Strong Pitch For Rationalization Of FSI, Tax Sops

News Posted - 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 Standard