Unskilled Forum
Welcome to Unskilled! Smile
Please Login/Register To have a full access in our site!

~ Unskilled Team/Staff!

You are not connected. Please login or register

Appreciating in value due to a host of factors

Go down  Message [Page 1 of 1]


Level 1
Level 1
The following
additional fiscal incentives have been extended to the National
Housing Bank (HUDCO) due to its prominent role in funding
Real Estate in Cochin and
also the developments in other cities. It is suggested that the
Housing Finance Corporations (HFCs) may also be made eligible for
these incentives:

1.Under Section 88
(XIV) of the Income Tax Act, subscription to approved deposit scheme
of the National Housing Bank is eligible for a rebate from income tax
at the rate of 20 percent along with Life Insurance Corporation’s
(LICs) premium, deposits in Provident Fund, etc, within the overall
limit of Rs.50,000. It is suggested that similar benefit may be
extended in deposit schemes of HFCs

2.Under Section 54E of
the Income Tax Act investments made in approved debentures or bonds
issued by the National Housing Bank and also by HUDCO are exempt from
tax on capital gains. If similar benefit is extended to the
HFCs they will be able to obtain funds for investment, particularly
those obtained from the sale of houses at a lower rate of interest,
viz., nine percent per annum.

It may be mentioned
that the above mentioned fiscal relief at serial nos. (1) and (2) are
not likely to cause much extra burden on the national exchequer,
since the benefit of these concessions can be claimed only within the
overall ceilings prescribed under the Income Tax Act and along with
other specified investments. But the aforesaid exemptions if
extended to HFCs will go a long way towards improving their financial

3.The National Housing
Bank has been granted exemption from income tax and any other tax in
respect of its income, profits or gains derived vide Section 48 of
the National Housing Bank Act, 1987. HUDCO has also been
enjoying total exemption from income tax since its incorporation in
1970. The exemption is granted for a period of five years at a
time and is extended thereafter. Similar exemption from income
tax granted to HFCs will go a long way towards strengthening their
financial base.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum