BUDGET REACTION | Raj Shah, Director,Namrata Group

The much awaited Union Budget is out today with many new announcements for all across all the sectors. The budget is mainly aimed at economic reformation of the poor.

The main highlights are:

• Income Tax rate cut to 5 pc for individuals having income between Rs 2.5 lakh to Rs 5 lakh
• 15 pc surcharge on income above Rs 1 cr to continue
• Pace of demonetization has picked up; demonetization effects will not spill over to next year.
• Demonetization will help in transfer of resources from tax evaders to government:
• The effect of demonetization will not hamper any sector and cash will be sufficiently available in new currency. For the real estate sector, the expectations were quite high. I would say it is a mix budget for this sector. The allotment of ‘infrastructure’ status to the affordable housing campaign is a positive step taken by the government. The allotment would allow the private players to invest in the ‘housing for all campaign to be completed by year 2022. Another important announcement made by FM, Arun Jaitley, was that under affordable housing, the carpet area of 30-50 square meters will now be applicable as against built-up area of 30-50 square meters making the area increase of 20 per cent. Capital Gains Tax holding period for immovable property reduced from three years to two years. However the Finance Minister did not give clarity on GST and also did not award industry status to the real estate segment. Also a single window approval should have been given for the process in this sector to facilitate the entire process."