Mr. M R Jaishankar, Chairman & Managing Director, Brigade Enterprises
The Finance Minister has presented a very intelligent and balanced budget to help all round growth of the Indian economy, with particular reference to rural economy, education, health care, infra and other sectors, although no additional benefits are given to the real estate sector. I only wish more emphasis was given to the tourism sector, which is a huge employment generator.
Overall, I would give a rating of 8 – 8.5 on a scale of 10. It is very good for the country on a medium to long term basis.
Ashish R. Puravankara, Managing Director, Puravankara Limited
The Union Budget for 2018-2019 demonstrates an encouraging growth story for India. The pre cursor for Union 2018 for the real estate sector started with the notification of the GST council to extend the concessional rate (of GST) acquired under the Credit Linked Subsidy Scheme (CLSS) for Housing for All (Urban) Mission/PMAY effectively came into force as on 25th January 2018. This now brings the current GST at 8% instead of 12% for under-construction homes.
A robust road map for housing for all was laid during the budget last year such as infra status to affordable housing and tax holiday for affordable housing and now the establishing of a dedicated affordable housing fund under the National Housing Bank will give it a huge fillip too.
The extension of corporate tax rate of 25% to companies with the turnover up to 250 crore from just 50 crore till last year, will have a positive impact on the health of corporate India irrespective of any sector. With the focus on development in rural India, infrastructure augmentation, healthcare accessibility, education enhancement, employment benefits and smart city expansion, our country is gearing towards a stronger, healthier and brighter economy. We will be happy to contribute to our nation’s growth story and accelerate development and inclusive growth.
Mr. C N Govindaraju, Chairman & Managing Director, Vaishnavi Group
The Union Budget 2018 focuses on giving a major thrust to the rural economy while also seeking to boost growth, jobs and private investment. The budget has also focused on infrastructure including roads and railways which will help in nation building.
The lowering of corporate tax for small & medium enterprises with a turnover of upto Rs. 250 crores will encourage these organizations while at the same time giving a further fillip to the “Make in India” initiative of the government.
The reintroduction of the standard deduction of Rs. 40,000/- for salaried employees and pensioners will provide some relief to these sections.
However, there was nothing of note for the real estate sector which had high expectations of being conferred with infrastructure status. There was also an expectation of a reduction or rationalization of GST rates on property sales apart from bringing stamp duty under the ambit of GST. The industry was also expecting tax sops to homebuyers like increasing the Rs. 2 lakh tax deduction limit for housing loans, and tax incentives for first-time home buyers hiked from Rs. 50,000 to Rs. 2 lakh amongst others, all of which would have surely gone a long way in providing a huge boost to the real estate sector.
Mr. Adarsh Narahari, Secretary CREDAI Bengaluru
Smartly devised budget aiming at economic growth; importance has been given to healthcare, senior citizens, infrastructure, rural economy, education, health care, agriculture. Unfortunately no direct tangible benefits to real estate sector have been given. However the tax rate of 25% for companies up to 250cr turnover, dedicated fund for affordable housing and impetus on development of new airports will boost the real estate sector. The proposal for a suburban railway network at Bangalore will have a positive impact on area this network connects
One commendable about this budget is the government’s restraints in doling out goodies at the cost of fiscal discipline especially considering elections around the corner.
Mr. Farook Mahmood, FIABCI World President and Chairman & Managing Director Silverline Realty
Double taxation of 5% is a positive move and helpful to the industry. It is a good step forward by the government to understand the mood of the industry.
A lot of definite and positive steps have been taken towards infrastructure, housing for all, smart cities and urban housing. Even though the wish list of the Real Estate industry was not fulfilled, it is still a very positive and appeasing budget.
Dr. Bani Anand, Founder & Managing Director, Hairline International, Hair & Skin Clinic
It is good to see that MSME (Micro, Small & Medium Enterprises) corporate tax being reduced to 25 percent for turnover of up to Rs 250 crore and covers 99% of companies filling returns. This makes the scenario competitive for larger corporates considering the tax burden has been reduced. Additionally with the Mudra Yojana target increased to Rs 3 crore, this is a positive step for MSMEs and will go a good way in job creation. It works really well towards the support and growth of the sector. What I would have liked to see more of, are stronger initiatives and support schemes for women entrepreneurs. However, the allocation of Rs 1200 crore for specialized Health & Wellness centers is a clear for the industry.