« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  UP Vidhan Sabha passes VAT Bill... Export-oriented units’ tax holiday may get longer... » Dismantle tax on house construction: Urban Housing Ministry February, 19th 2008 The Urban Housing Ministry has proposed that the 12.5% service tax on construction of residential units be scrapped. This would bring down the cost of owning a house by 3-4%. The ministry is of the view that the tax was negating all government initiatives aimed at keeping property prices in check. Budget 2005 had brought construction of residential complexes having more than 12 residential houses or apartments within the service tax net. This tax covers independent satellite townships that have more than 12 houses spread horizontally, as well as apartment complexes of more than 12 flats. Service tax is not charged on the entire amount charged for the residential unit. Instead, the tax is levied on value addition by the developer based on the cost of land and construction materials. It goes without saying that developers pass on any increase in input cost to the consumer, a Nirman Bhawan official said. According to some industry sources, small builders are worst affected because of service tax. Most residential complexes in the city have more than 12 flats, even small builders take up complexes of about 20 flats or so. If they try to push up costs, it will definitely cut into their sales. This tax was imposed by the government in the 2005-06 Budget. Interestingly, it was the year in which not only the existing private builders like DLF, Unitech, Rahejas and Hiranandanis had announced ambitious housing projects in various parts of the country, but also many new developers such as Omaxe, Parsvnath and Sobha Developers had come in fray. Understandably, the tax was imposed considering the increased business activity in the area of housing construction, the official said. Housing ministrys budget proposal seems to be in tune with the UPA governments increased emphasis on housing. As per Planning Commission estimates, the country will be short of 22 million urban dwelling units by 2010. With general elections just about an year away, this budget is expected to be populist and efforts to bring down housing prices is obviously a key priority.