Reduce Stamp Duty For Affordable Housing: Venkaiah Naidu

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The Ministry of Housing and Urban Development has written to states government to reduce the stamp duty as it is adding to the burden with a new Real Estate Regulation Bill where the rules are almost ready and will be announcing at any time, union minister, Mr M Venkaiah Naidu said at an ASSOCHAM event held in New Delhi today.

Reduce Stamp Duty For Affordable Housing: Venkaiah Naidu

On the GST, Mr. Naidu said, "the government is continuously engaging itself with different parties not only with Congress party but possibly each and every party. At the end of the day, we want to get GST passage through consensus. The biggest beneficiaries of the GST will be state. The signals I am getting from all sides is positive. I hope the GST Bill will be passed during this session itself," he added.

Housing for All Mission for urban areas will be implemented during 2015-2022 and this Mission will provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/beneficiaries by 2022.

"My Ministry's priority is to provide all beneficiaries with access to safe and affordable housing. This is the first step in building strong and healthy communities where individuals and families can prosper", added Mr. Naidu.

The mission will support construction of houses upto 30 square meter carpet area with basic civic infrastructure.

States/UTs will have flexibility in terms of determining the size of house and other facilities at the state level in consultation with the Ministry but without any enhanced financial assistance from Centre.

The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate.

Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI).

Another component of the mission is Affordable Housing in Partnership that is a supply side intervention.

To increase availability of houses for EWS category at an affordable rate, States/UTs, either through its agencies or in partnership with private sector including industries, can plan affordable housing projects. Central Assistance at the rate of Rs. 1.5 Lakh per EWS house would be available for all EWS houses in such projects.

The Budget 2016-17 moved in the direction of facilitating the much desired eco-system to mobilise resources and according benefits of infrastructure status for housing and construction sector.

To promote rental housing which meets the needs of migrants and those who can't afford to build a house, income tax deduction limit for house rent has been increased by Rs.36,000 (from the present Rs.24,000 to Rs.60,000)

For the first home buyers, an additional deduction of Rs.50,000 allowed if loan amount is less than Rs.35 lakhs and loan sanctioned in 2016-17 and cost of house is below Rs.50 lakhs;

Real Estate Investment Trusts (REITS) and Infrastructure Investment Trusts (InVITS) encouraged by withdrawing 17% Dividend Distribution Tax; Excise Duty exemption extended to Ready Mix Concrete.

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