Jews of India Forum
Welcome, Guest. Please login or register.
July 21, 2017, 01:46:52 AM

Login with username, password and session length
Search:     Advanced search
If you would like to post to this forum please use our contact page at the link below. Let us know you're interested in posting messages to our forum.
http://www.jewsofindia.org/contact.html

Subscribe to our free newsletter.
187 Posts in 148 Topics by 89 Members
Latest Member: elijahnathan
* Home Help Search Calendar Login Register
+  Jews of India Forum
|-+  Commerce
| |-+  Doing Business
| | |-+  Appreciating in value due to a host of factors
« previous next »
Pages: [1] Go Down Print
Author Topic: Appreciating in value due to a host of factors  (Read 2051 times)
Pratico15
Newbie
*
Offline Offline

Posts: 1


View Profile
« on: February 28, 2009, 12:36:46 AM »

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 Corporationís (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 viability.

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.

Logged
Pages: [1] Go Up Print 
« previous next »
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2013, Simple Machines Valid XHTML 1.0! Valid CSS!