Budget 2020: FM Sitharaman’s sops to boost affordable housing projects

Rs 1.5 lakh benefit on interest paid on affordable housing loans extended by a year; Tax holiday for developers; industry hails initiatives

The incentives announced by the finance minister would boost affordable housing projects in the country, say developers, finance companies and consultants. Finance Minister Nirmala Sitharaman in the Budget 2020 proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by a year to March 2021.

Tax holiday for affordable housing developers was also extended by a year. Affordable housing projects are given a deduction under Section 80IBA of the Income Tax Act. To promote Housing for All by 2022, the sunset date for taking approval was extended till March 31, 2020, in the Interim Union Budget 2019.

Ravindra Sudhalkar, ED & CEO, Reliance Home Finance said,” The move to extend tax sops to affordable housing projects for another year is a step in the right direction to encourage developers of affordable housing projects. It will enable the government to meet its objective of providing Housing for All by 2022 by reviving development activities”.

Farshid Cooper, MD, Spenta Corporation, said the amended tax slabs will ensure more disposable income in the hands of the middle class. “This could lead to reviving the consumption cycle in the real estate sector and kick-starting the economy. Further, with additional savings, individual investments in housing, especially affordable housing could see an uptick in the near future,” he said..

Budget introduces 5 tax slabs, lower rates for those foregoing exemptions

Under the proposal, people with an annual income of Rs 5 lakh to Rs 7.5 lakh will have to pay a reduced tax rate of 10 per cent; between Rs 7.5 lakh and Rs 10 lakh 15 per cent

Finance Minister Nirmala Sitharaman on Saturday introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum, if a taxpayer opts for foregoing exemptions and deductions.

The new tax regime will be optional and the taxpayers will be given the choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions, she said in the Lok Sabha while unveiling the Budget 2020-21.

Under the proposal, people with an annual income of Rs 5 lakh to Rs 7.5 lakh will have to pay a reduced tax rate of 10 per cent; between Rs 7.5 lakh and Rs 10 lakh 15 per cent; between Rs 10 lakh and 12.5 lakh 20 per cent; between Rs 12.5 lakh and 15 lakh 25 per cent; and above Rs 15 lakh 30 per cent, she said.

The proposal would lead to a revenue sacrifice of Rs 40,000 crore per annum, she added.The minister further said that the new regime will be optional and the people can continue with old regime if they desire so. Observing that there are about 100 tax exemptions and deductions, she said that 70 of them are being removed in the new simplified tax regime, while the remaining will be reviewed and examined in due course.

Union Budget 2020: Govt may expand spending on infra, offer expense motivators

In yearly monetary report, the administration anticipated that financial development would get to 6.0% to 6.5% in the monetary year starting April 1

Indian Prime Minister Narendra Modi’s administration is probably going to expand state spending on foundation and offer some assessment impetuses in its Budget 2020 on Saturday, planning to get development back up from its most minimal in 10 years. In its yearly monetary report, discharged on Friday, the administration anticipated that financial development would get to 6.0% to 6.5% in the monetary year starting April 1, however cautioned that it might have surpass its shortfall focus to resuscitate development.”

Check Budget 2020 Live most recent news here

India is confronting its most noticeably terrible monetary log jam in 10 years. The administration gauges monetary development this year, which finishes on March 31, will slip to 5%, the most vulnerable pace since the worldwide budgetary emergency of 2008-09. Fund Minister Nirmala Sitharaman, who will exhibit her second entire year yearly spending plan to parliament, could concede the prior objective of slicing the deficiency to 3% of total national output in 2020/21 by at any rate two years, government sources told Reuters.

This will be over generally $28 billion of spending from off-spending borrowings, as the administration looks to hold the shortage under tight restraints. Financial experts in a Reuters survey anticipated the administration would set a shortage focus of 3.6% of GDP for 2020/21, up from 3.3% focused for the present year…

Shares purchased on January 31 can’t be sold on the Budget day. Here’s the reason

NSE, BSE to direct a unique exchanging session on February 1; settlement of exchanges on February 4

Account Minister Nirmala Sitharaman is set to exhibit the Union Budget for FY21 on February 1 in the midst of desires for unwinding in Long Term Capital Gains assessment and Dividend Distribution Tax. Market controller, Securities and Exchange Board of India (Sebi), has permitted the National Stock Exchange (NSE) and BSE to direct normal exchanging on Saturday, February 1.

As indicated by the notification gave by the trades, exchanging will start from 9:15 am, and will last till 3:30 pm. Pre-opening requests will be put somewhere in the range of 9:00 and 9:08 am, and will be coordinated from 9:08 am and 9:15 am. Prior in 2015, markets were open for exchange on Saturday, February 28, when at that point Finance Minister Arun Jaitley displayed the Budget 2020 Live. In what capacity will the recommendations sway your portfolio? Catch all the activity in Business Standard’s MARKET BLOG

Speculators, be that as it may, hoping to execute on Budget day must remember a couple of things while submitting their requests. As per Tradebulls Securities – a main residential financier, orders set on Friday, January 31 and on February 1, 2020 will be chosen February 4. Additionally, shares purchased on Friday, January 31 can’t be sold on Saturday (Budget day). This is on the grounds that exchanges executed on Friday, January 31 and on February 01 will be chosen February 4…

NPA provisioning should be based on assessment: Srei Infra vice chairman

Sunil Kanoria Vice Chairman, Srei Infrastructure Finance Limited talks about some radical reforms in the banking sector

From liquidity emergency in the NBFC area to lull in the economy, over the most recent one year Srei Infrastructure endured numerous emergency circumstances. Sunil Kanoria Vice Chairman, Srei Infrastructure Finance Limited, in a meeting with Ishita Ayan Dutt and Namrata Acharya, discusses some extreme changes in the financial segment like expelling course of events based NPA provisioning and keeping the moneylender and borrower relationship classified. Altered Excerpts

Also Read Budget 2020 – FM May Announce Second Capital Infusion For Non-Life Insurers

What are your desires from the Union Budget 2020?

We have to help government consumption so that there will be capital arrangement and recovery of monetary development. From a medium to long haul point of view the India development story is as yet unblemished. Thus, there would at present be remote ventures yet that will be confined to specific pockets and segments. The administration use will be the key driver which will bring about capital development and that will acquire ventures and resuscitate India’s financial development. This ought to be the center territory for the administration in the current year’s Budget.

Is the agony over for the nation’s budgetary administrations segment?

I think the piecemeal way to deal with take care of India’s monetary segment’s issues isn’t working. Money related administrations area is the existence blood of the economy. In India, there is a quick and pressing need to make an advancement monetary foundation. That establishment, with a solid capacity and supervisory group, should give long haul (20-25 years) financing backing to the economy. Practically every one of the nations on the planet have one such foundation which is possessed by the legislature. There is a requirement for such an organization in India…Read More