This followed a recent meeting between the Finance Minister Yashwant Sinha and the Union Minister of Urban Affairs and Employment, Ram Jethmalani who sought various fiscal benefits in a bid to give a boost to the housing activities, the reliable sources in the Urban Development Ministry disclosed. The exemption from the provisions of section 69 of the Income Tax has been sought since the value of such `unexplained' investments was deemed to be the income of the assessee for the year but once the investments were exempt from the provision, it would make housing sector more attractive for investment.

`This was not proposed as an amnestyscheme but an attempt to provide legal provisions for making investments more attractive in the sector,''the sources said.

The Budget may also lure the corporate houses in the sector by extending some income tax reliefs including tax holidays provided they build houses for their employees. Other incentives envisaged are extension of the benefits of sections 80(1) A and 10 (23) G of the Income Tax Act to financial institutions lending to the sector.

The Finance Ministry is also considering a hike in the limit of exemption from the present 25 per cent to 50 per cent in the repayment of interest. Besides this, the Finance Minister is also expected to announce measures for the development of securitisation market in the sector facilitating transfer of debt in an unhindered manner. When contacted, the Minister of State for Urban Affairs and Employment, Bandaru Dattattrey said the last year's budget took care of the supply side of the housing while this year's budget is expected to tend to the demandside.

Dattatrey said unless more concessions were given, it would be difficult to meet the target of constructing 20 lakh additional houses every year as promised in national housing policy.

He said concessions under sections 80(1)A and 10(23) G offered to the infrastructure sector are not operational due to complexity involved in complying with these provisions. The facility of these sections has not been extended to the sector despite several representations. Section 80(1) A must be modified for companies financing housing projects the minister said adding this should provide concessions to housing finance companies. Moreover, benefits under these section will encourage individuals to build and rent houses reducing the strain in metros and satellite townships would come and help decongesting big cities, he said.