Presentation By : YashChirag

MadhuriHardik “T”

Presentation Flow :

• Higlights of budget

• Impacts on various sectors

• Results

Budget impacts on various sectors

The finance minister has allowed a complete pass-through for taxation purposes. In a bid to boost investments in the real estate industry, the government intends to provide necessary incentives for introduction of real estate investment trusts (REITs).

He also said that REITs would be given a tax pass-through status to avoid double taxation. Additionally, a REIT-like structure for infrastructure projects (INVITS) has been proposed. 

REIT: the real estate industry

FDI:

Minimum size of built-up area for FDI investment has been reduced from 0.5msf to 0.2msf and value-wise from US$10m to US$5m with a lock-in of three years.

This has the potential to attract FDI money into many more assets. Additionally, projects committing 30% of total space for affordable housing will be exempt from size and investment requirements.

Tax Exemption:The FM has given much-needed relief to individual tax payers by raising the income tax exemption limit by 50,000.

The budget has also increased the tax exemption for self-occupied homes.

Interest paid on mortgages exempt from tax has been increased by Rs. 100k to Rs. 200k and principal repayment increased by Rs. 50k to Rs. 150k under section 80C.

The combined effect will definitely allow the fence sitters to go in for home loans and Real estate companies with residential products will also benefit from this.

RESULTS

Impacts on sectorBenefited

• Steel

• Tourism

• I.T.

• Agriculture

• Infrastructure

• Telecom

• Infrastructure Development Finance Company Ltd (IDFC)

• Start ups

Semi Benefited

• Real estate

Rescorce : Economic times

Thank You