Budget 2020: Give tax incentives for home buyers

Budget 2020 expectations: Govt should offer tax incentives for home buyers

By Umesh Revankar

The government should reduce direct taxes to drive the consumer demand. There should be special tax incentives for home buyers to revive the real estate demand

The government should announced the scrappage policy to revive the auto sector. There should be special incentive for people who voluntarily scrap their vehicles. People who scrap their vehicle should be given a credit note which is transferable/exchangeable so that any customer can use the same while buying the new vehicle.

The person who is scraping 15-20 year old vehicle, most likely buy a used vehicle not the new one, by giving credit note actual buyer of new vehicle would use the credit note and pass on the benefit to the person who scraps the vehicle.

The NBFC’s who are predominantly in to financing priority sector, having niche presence, reach and specialisation should be given more scope in priority sector lending target of banking sector.

Thus, we expect the government to announce more prudent policies which are customer centric to revive the consumer demand in the economy.

(Author is  MD and CEO, Shriram Transport Finance)