Builders Association of India demands 'infrastructure status' for construction industry

MUMBAI: Builders Association of India has demanded 'infrastructure status' for the construction industry and to put rental income under the infrastructure status.
"We builders of India feels that since Independence, out of the three basic needs i.e. "Roti, Kapda & Makan" we have successfully overcome on "Roti & Kapda" but have miserably failed in solving housing problem in urban area and failed to keep a pace of housing stock.Presently there is a shortage of 30 million housing in urban area.
Union Budget is a great instrument to frame a policy to overcome these issues. If finance minister can give real estate sector, an 'infrastructure status', it will be a bold and far sighted decision from the Government of India, in order to remove the shortage of housing stock in urban area.
Similarly he can also put rental income under the infrastructure status. Infrastructure status will enable them have completely tax free and if the same status is given to real estate, it can pull the resources to this sector. This bold and far-sight decision from Government of India can remove shortage of housing stock in short period." said Anand J Gupta, secretary, Builders's Association of India (BAI).
Anand Gupta added, "The exemption limit on interest of home loan we need to revise from 1.5 to 3 lakhs to keep the pace of interest to cover cost of flat available in major part of the country. Presently there is an exemption limit of 1.5 lakh for the present interest rate on home loan ranging between 10 per cent p.a. to 11 per cent pa. as such this amount is sufficient only to the extent of home loan upto Rs 15 lakh. All the major towns having population above one million; there are hardly any location and flats available within 15 lakhs, hence most of the flats are available at Rs 30 lakh and above, similarly even exemption limit as provided u/s 80C at Rs one lakh which includes loan amount,this is also required to be increased from Rs 1 lakh to 3 lakh. Freely allowing FDI without any barrier of size of money and land size can also lead to miracle changes."