CLSA: Real estate Higher limit for affordable housing / interest subvention positives; Imposition of MAT on SEZ income negative

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Real estate
Higher limit for affordable housing / interest subvention positives; Imposition of MAT on SEZ income negative


Push to broaden affordable housing
Limit of value of housing classifying as affordable
raised from Rs2.0m to Rs2.5m.
Mortgages classifying for interest subvention scheme
in affordable housing raised from Rs1.0m to Rs1.5m.
Should result in 1% interest subvention schemes;
priority sector lending to extend.
Mortgages taken by EWS/LIG households to be
guaranteed.
Investment linked deduction for developing affordable
housing proposed; details to be worked out.
Unitech (Unihomes) and HDIL (Virar housing) – benefit
Implementation of MAT on SEZs
SEZ developers and units operating in SEZs to be
taxed at MAT (20%) against Nil – Expected move.
Dividend distribution tax to be imposed on SEZ
Developers.
Small negative earnings impact for DLF.
No extension of STPI benefits
Sunset clause in STPI to be effective from April’11 -
Positive for SEZ developers but largely factored in.