Emphasising the need for boosting Housing sector, Pravin Doshi, President, Maharashtra Chamber of Housing Industry shares his expectations from Union Budget 2009-10.

"Real estate industry in India has witnessed ups and downs during the last year due to general economic slowdown across the globe. Realty prices also fell 30-35 per cent in India due to lack of demand in the recent past. The real estate industry in India is the second largest sector after the agriculture contributing to the Indian GDP, now needs attention from the government. The industry has been facing lot many hurdles and expecting the new government for some announcement to boost the sector, which has already shown signs of revival in the last few months.

Maharashtra Chamber of Housing Industry (MCHI), formed in 1982 is the most prominent body of real estate builders and developers bringing together members dealing in real estate and construction industry on one common platform to address issues facing the industry.

The MCHI expects following measures by the Union Finance Minister Mr. Pranab Mukherjee, while announcing the union budget.

· To increase the bracket for priority lending for houses up to Rs 30 lakh instead of Rs 20 lakh coupled with reintroduction of Section 80(IB) and reductions in direct taxes

· To frame policies in order to motivate the home buyers to start acquiring residential units and at the same time provide incentives to the developers to make investments in the real estate sector

· All housing loans should be made available at interest rate of 5 - 7% and for Economically Weaker Section (EWS) & LIG at 3%. 100% rental income should be exempted from income tax for the first 3 years, if the built up space is purchased in the next 6 month

· To remove Service tax on rentals of commercial properties which ultimately add to the burden on consumers

· To initiate public-private partnership in low income housing wherein land bank available with the government may be provided to the developers

· To introduce Value Added Stamp Duty (VAS) for the housing industry, wherein, any stamp duty paid towards the purchase of land will be adjusted from the stamp duty paid at the time of sale of the property

· Restore Section 80 IB (10): The government to continue the IT exemption under section 80I B. Income Tax deduction to developers under this section was available for projects approved before 31 March 2007 and the date was not extended in the Finance Bill 2007, the concession available under this section for projects sanctioned after 31March 2007 ceased. Therefore, we suggest that same should be restored again.