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Government contemplates tax incentives for certain projects
November, 25th 2015

In order to spur investment in the housing sector, the government is considering to provide tax incentives for certain projects to ensure 'Housing for All' by 2022.

The tax incentives, which could be announced in the Union Budget, would aim at promoting investments in rental housing by institutional players.

The draft National Urban Rental Housing Policy have suggested a host of fiscal incentives to encourage rental housing with a view to achieve the goal of housing for all by 2022.

Housing is considered as one of the key sectors to promote growth by increasing demand for steel, cement, besides creating additional jobs.
The tax department, according to sources, is looking at the draft rental housing policy to ascertain the tax incentives that can be doled out to the sector to encourage investments in housing sector.

The draft policy has suggested tax incentives for house owners who will rent out the property, institutional owners wanting to set up mass rental housing and Property Tax exemption for Social Rental Housing properties.
It also suggested treating rental housing stocks at par with owner occupied premises in terms of property tax treatment and calculating other utility charges (water/ electricity etc).

"The Policy seeks to promote various types of public-private partnerships for promotion of rental housing in the country which will act as a catalytic force to achieve the overall goal of Housing for All by 2022," it added.

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