By Ashish R Puravankara
The Union Budget 2020 brings good news for the growing Indian middle class. The IT slabs in the new regime have the potential of putting extra money in the pockets of every Indian, which will invariably boost the overall consumption.
Furthermore, the INR 1.5 lakh deduction in affordable home loan interest extended by another year will also bring people closer to their dream of becoming homeowners. The tax soaps for affordable housing is also extended by one year to 31st March 2021 is a welcome move and our affordable housing brand, Provident Housing Limited looks forward to leveraging that. The increase of the limit from 5% to 10% in the calculation of income ( i.e. the difference between the consideration value and circle rates) while investing of capital gains and business profits in real estate, may see an increase in investors in real estate.
The dividend tax distribution being abolished will ease the tax burden across the industry and will bring some cheer.
We are also happy to see the budget’s commitment towards the rural sector which is the main driver for consumption across the nation. With the attention given to the renewable energy sources, which is a very immediate need, we hope to see some sustainable environmental practices evolve.
Infrastructure also has been given importance in this budget especially the roads and railways. As a company headquartered in Bangalore, we are delighted about the urban rail network announced, it is a welcome move to avoid the time spent in gridlocks.
While the Real Estate industry would have like to see some sweeping lending reforms, it does seem like a road map drawn for accelerating consumption and fiscal confidence.
(Author is Managing Director, Puravankara Limited)
