Finance Minister Nirmala Sitharaman today presented Union Budget in Parliament, which rests on six pillars – health and well-being, physical, financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance.
The FM’s budget tackles the considerable wish list of industries and consumers that were impaired by the Covid-19 pandemic, while acknowledging the spending challenges of the administration. The Finance minister in her Budget 2021 speech announced a slew of taxation reforms along with an increased spending on healthcare with Rs 35,000 crore on Covid-19 vaccine development.
In significant changes to the taxation process, Sitharaman announced the scrapping of income tax for senior citizens under certain conditions, new rules for removal of double taxation for NRIs, and a reduction in the time period of tax assessments among other measures. Startups will get an extension in their tax holiday for an additional year.
This was Sitharaman’s third budget under the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi.
Owing to enhanced spending on public infrastructure projects, which is likely to give impetus to the employment generation and attract the essential investment and lift up the economic revival, the budget 2021 has been receiving a warm welcome from the real estate industry leaders. Here are the excerpts.
Mr Satish Kumar Agarwal, Chairman and Managing Director, Kamdhenu Group
“We are quite positive on the future with the government very bullish and focused on building infrastructure in the country in various areas – agriculture, railways, health, roads, housing and affordable housing , etc. So overall there is expected to be a lot of infrastructure building activities in the coming future and all that would need our products including paints. The recovery of our economy will be construction and capex led and we are well prepared to play our role. We are back to our pre covid manufacturing capacity and ready to take on the new opportunities that may come our way and contribute our best to the mission of a $5 trillion economy and nation building”.
Mr. Ankush Kaul, President – Sales & Marketing, Ambience Group
“The focus of the Union Budget 2021-22 is to improve economic efficiency and infrastructure growth. Increased focus on infrastructure growth and capital expenditure will impact the overall growth of the real estate sector too. A good infrastructure could propel the development of real estate, both commercial and housing, along the transit corridors, highways and newly proposed airports.”
Rajesh Binner, Founder and CEO, YieldAsset Real Estate Tech Pvt Ltd, a new age proptech firm, added,
“The commercial real estate market in India has transformed over the past decade amidst policy reforms, institutional investments, foreign partnerships and growth in the services sector. The government’s plan of monetisation of surplus land under PSUs, airports and other government companies will benefit the commercial real estate sector, as such land will come with clearer titles.
The proposed Nationalized AMC (Asset Management Company) to take over stressed assets will simulate growth and bring a certain level of stability for the commercial realty sector. The relaxed rules in the Companies Act for start-ups and One-person Company creates a frictionless environment. Fintech focussed centre at GIFT City will be very encouraging to the vibrant and high-growth start-ups. GIFT city also provides tax holidays to rental/leasing companies. The proposed launch of a portal to collect data of Gig and construction workers will help improve the current labour shortage situation in the construction industry. The Government’s move to notify rules to avoid double taxation will also boost NRI investments in the country. Dividend from REIT and InvIT – exempted from TDS is a very positive step for retail investors.
Over the next few years, the commercial real sector is all set to flourish. With the implementation of many new businesses, the demand for modern office environments is definitely on the rise, both from traditional companies and new innovative start-ups. The commercial market for real estate remains to be a strong beneficiary of India’s economic growth.”
