Real estate is a sector which generates second highest employment and contributes approximately 5% of the GDP of the country.
It is the fastest growing sector with ever growing concerns.
Keeping in mind certain inherent concerns which the industry encapsulates, the severe credit crunch is adversely impacting the 'Industry'.
The fact remains that Real Estate is not even recognised as an industry, although keeping in view that it promotes various other industries like steel, cement and more.
It is argued that it should be treated as "Priority Sector".
This will help the sector with better availability of funds.
FDI & ECB norms should also be relaxed in the coming budget to ease in fund availability.
From a tax perspective the budget should extend the tax holidays u/s 80IB for integrated townships.
The deduction on interest on loan repayment by individuals also needs to be hiked.
From an indirect tax perspective budget should address abolition of service tax for residential apartment below a logical threshold.
Presence of real estate sector can be gauged by the fact that 5% of the global carbon emissions are attributable to this sector.
It is only fair for real estate to get its due share in forthcoming budget.
The author is founder and director, Amplus Consulting
Union Budget 2012-13: Complete coverage
