NEW DELHI: The countdown for the Union Budget 2013 has
finally begun. This time NAREDCO (National Real Estate Development Council) has
asked for special provisions (like inclusion of cost of land and building
construction in the capital expenditure in Budget 2013) from the Finance Minister P.Chidambaram.
According to NAREDCO – “section 35AD sub-section (5)(ac) & (5)(ad) of Income Tax Act impose deduction of capital expenditure incurred wholly and exclusively for developing and building a housing project under a scheme for slum development or rehabilitation or affordable housing framed by Central or State Government and notified in accordance with the guidelines prescribed is allowed”.
"Definition of capital expenditure does not include land cost and building construction cost or any other significant investment in the project. As a result, developer of slum redevelopment/rehabilitation and affordable housing does not get any major advantage as far as the income tax concession is concerned," NAREDCO added.
To
solve the issue NARDECO suggested that it would be wise to make the cost of land and building construction cost a part of
capital expenditure so that the developers can enjoy some benefits.
Courtesy: economictimes article
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