State the benefits of incorporating a Housing Finance Company.

Benefits of incorporating a Housing Finance Company Among the financial services, housing finance creates employment, both directly and indirectly. Industries such as cement, brick manufacturing, sanitary products, electrical fittings and glass industries experience more demand due to house construction. Rural housing develops not only rural areas but prevents migration of labor to urban areas. Housing finance helps in creation of more houses which results in building up more infrastructure facilities, such as roads, electricity generation, drinking water facilities, etc. Factories or industrial establishments create townships by providing more housing facilities to their employees. Housing finance thereby reduces congestion in urban areas. Due to housing finance, there is a vertical expansion and re building of dilapidated houses and remodeling of the existing houses. Housing facilities not only improve; they also reflect the culture of the country. Chandigarh city is an example for modern housing which has been built by a French architect. Non-conventional energy gets popularized due to modern housing facilities which is one of the major benefits of housing finance. The holding period for capital gains tax in case of immovable properties has been reduced from three to two years. Moreover, the Finance Minister has proposed to shift the base year for indexation from 1.4.1981 to 1.4.2001 for all classes of assets, including immovable property. This step would allow more realistic calculation of the cost of acquisition of the house while claiming indexation benefits. It is expected that with several associated benefits and the advantage of digital documents, the cost of finance is expected to come down, which may be passed on to the real buyers. In the days to come, supported by growth drivers such as rising disposable income, personal income-tax benefits, increasing urbanization and economic growth of tier II and tier-II cities, the sector is likely to see immense growth.