Key challenges
- Given the market / pandemic situation, there is an overall fall in the fair market values of properties. The reckoner values (circle rates) have pretty much remained at the pre-Covid levels. Such a situation leads to tax being calculated on deemed income basis.
- Pre-sales have reduced significantly due to lack of customer confidence on delays in project completion. This has created liquidity issues with residential developers.
Industry ask
- Reduction in stamp duties in some states led to significant increase in demand. To enhance the demand further across the country, a long-term capital gains exemption could be provided on all under construction properties purchased during FY 2021 / 22. With reduced stamp duties and no capital gains, it would be a great incentive for property buyers and would also boost the GST collection.
- In view of the enhanced focus on the digital economy, there will be a need for high quality data centres. Tax incentives for developers undertaking data centre projects would help in providing the initial boost to this niche asset class.
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