Government plans tax incentives to boost housing

The government is planning some tax sops to the housing sector in order to invite more investments to provide housing for all by 2022. The decision has come after a review of the infrastructure sector which has still not picked up pace.

The official data too shows  infrastructure production growth coming to 2.3 per cent during the first half of the current financial year compared with 5.1 per cent last year.

In a recent meeting to review infrastructure projects, Prime Minister Narendra Modi had asked the line ministries to hasten up infrastructure projects to push economic growth.

This came after a detailed presentation by Niti Aayog on the progress made by various infrastructure related ministries. According to sources, the prime minister underscored 14 areas that needed to be speeded up, including the housing sector.

A draft National Urban Rental Housing Policy too has suggested fiscal incentives to the housing sector with a view to achieve the goal of housing for all by 2022.

The Finance Ministry is looking into the suggestions and some incentives can be awaited in the Budget for 2016-17, according a senior official.

A whole host of public-private partnership promotion issue is also being looked into to promote housing sector, the official said.