New Delhi: In a pre budget memorandum submitted to the Finance Ministry, Confederation of Real Estate Developer's Associations of India (CREDAI) has 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.
The Confederation lamented 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.