The Budget aims to accelerate the momentum in the real estate business by reducing the term of the capital gain tax
The most important aspect of this year’s Budget is that there is nothing majorly negative in it. It clearly demonstrates the continuance of the government’s stated policies.The Budget clearly underscores the need for government spending and the emphasis is on substantial enhancement in the capital expenditure to spur growth and help create more jobs. While the focus is on spending more on infrastructure and rural development, this Budget has been cautious on fiscal consolidation.The government has clearly understood the pain that industry has gone through for stalled projects, which not only clog the system but put the companies executing it, and banks in trouble. Now, it is coming out with legislation, means that the government has not only its ears to the ground but also acting on it to bring a superior dispute resolution mechanism.It is also a welcome move to grant infrastructure status for affordable housing industry and reduction in the long term capital gains tax (CGT) as these steps will propel more buying and selling. The steps announced in the Budget to increase the area of affordable units will bring lot more housing under its ambit. More people will be encouraged to buy and invest in affordable housing projects as the tax structure is very low.The Budget aims to accelerate the momentum in the real estate business by reducing the term of the capital gain tax. Another vital aspect of this Budget is that it aims at scaling down taxation and regulatory overreach which will spur investment and benefit the ‘Make in India’campaign.