Union Budget 2016-17: Grant infra status to integrated townships

The government should grant infrastructure status to integrated townships so that banks are able to give priority sector lending to the sector. Incentives and special benefits to green and sustainable technology and methods of construction should also be addressed in the upcoming budget.

Real estate sector continues to be plagued by the issue of double taxation and tax complications which drive up the cost of construction and eventually make housing more expensive for consumers. It is also required that the budget encourages demand by increasing the deduction available for interest on housing loans from Rs 2 lakhs to Rs 3 lakhs p.a. in keeping with interest rates which are still high despite successive rate of interests last year which are yet to be translated by banks.