The Central Board of Direct Taxes added the ‘affordable rental housing complex’ to the list of infrastructure projects that can get foreign investment, via debt or equity.
“Affordable Rental Housing Complex” is included in the Harmonized Master List of Infrastructure Sub-sectors by insertion of a new item in the category of ‘Social and Commercial Infrastructure’, with a footnote defining Affordable Rental Housing Complex,” the Board said in a notification Friday.
The change means that foreign investors can directly or through vehicles such as alternate investment funds (AIFs) or infrastructure investment trusts (In-vITS) invest in rental housing projects in the country, under the sub-sector of social infrastructure. Income from this category will be exempt from taxes.
The move is likely to give a boost to the affordable rental housing segment in India, which has taken a beating amid the Covid pandemic, as per experts.
The Board has defined affordable rental housing complex as a project to be used for rental purpose only for urban migrant or poor, economically weaker sections or lower income group, for a minimum period of 25 years with basic civic infrastructure facilities such as water, sanitation, sewerage, road, electricity along with necessary social and commercial infrastructure and the initial rent fixed by local authority based on local survey of surrounding area wherein the project is situated.
The project should have at least 40 dwelling units of double room or single room or equivalent dormitory units or a mix of all three in any ratio but not more than one third of the total built up area under double bedrooms units. Space size for each has also been specified.
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1 Comment on this Story
Prakash Ramiah53 days ago
Is aff rent means aff hsg for all by 2022. What is aff hsg in 32 states with 80 lac circle rates and fsi at ,5,1,2,3 .and gujarath wants 70 plus floors.frequent change in circle rates. 188 sq ft flat at one crore how much emi or rent will the fellow occupying have to pay. After covid social distance is a factor in housing. If a foreigner gets rental income no tax,why not this extended to 25 years emi for individual owners. So in a nut shell car park at 25 lacs,31000 sq ft bungalow at 100 cr, tiny match box dwelling as aff hsg,no control on rent for aff hsg all are showing no answers to first flatseekers,slum dwellers and 33 plus old flat residents housing issues solved. We need a special aff hsg ministry,minister at center,states and one nation,one housing policy,dual pricing of flats monitered by rbi,rera. Badic fsi of 400 to 1200 sq ft flats at cost basis without land costs with housing loan is the correct answer for aff hsg. Same loan,same emi,same cost for 35 cr households. Think of jawans,probs,petty shop keepers,just married couple,etc
We need sweeping reforms . As per un spl rapporteur report on housing,housing is not commodity,but right. Landed gets fsi,what does landless get.is it not inequality as per art 14 of our constitution. Let us introspect.