Interim Budget 2019 Reaction - Mr.Anand Vilayannur, CEO & Co-founder, Tattva Mittal Group
"The Budget 2019 has brought good news for almost everyone. A lot was expected from this budget and most of it has been covered. While representing the Budget 2019 Piyush Goyal mentioned in the beginning that RERA and Benami Transaction Act 1900 are helping to bring transparency in the sector. Total number of 1.53 cr houses have been built under PMAY scheme which shows that the sector has fared well in providing homes for the middle and lower class along with the govt. The Budget has proposed to provide the benefit of rolling over capital gains if the investment is made in not just one, but two residential houses. This benefit would be offered for an amount of upto Rs 2 crore which is a once in a lifetime benefit for any individual. With the recent GST meeting announcement and the newly announced budget we truly hope the year sees a positive uptick for the real estate sector.
The No tax on Notional rent on second self-occupied home takes of some load from home buyers. The threshold limit for TDS on rental income has been increased to Rs 2.4 lakh from Rs 1.8 lakh currently, as home owners with rental income have something to cheer about. Income Tax relief on notional rent from unsold houses extended upto 2 years which brings some relief. For individuals with gross income upto 5 lakh get Income Tax rebate, is surely a great step. Even the standard deduction increased from 40,000 to 50,000 should be impactful for middle-class section. Looking in minor details the budget will bring most daily use item now under 0-5% tax slab under GST. The increase in Tax free Gratuity from 10 Lakh to 20 Lakh will indeed become a major relaxation for the middle class.
As per the budget speech, last 5 years have witnessed a wave of next gen structural reforms, we are today the 6 th largest economy in the world besides generating high growth rate we contained double digit inflation and resorted fiscal balance by the end of 2018. Infrastructure wise India is fastest highway developer in the world with 27kms of highway built each day which is surely proud news for us. By 2030 India will lead the energy revolution in the world with the electric vehicles as mentioned by Piyush Goyal during the budget in one of the 10 dimensions to be focused by the govt. This new India will only drive on electric vehicles but also would not have to import oil and will produce electricity on our own domestically. With all the challenges set to achieved in place India is poised to become reach $5 Trillion economy in the next 5 years, it looks like the government has already laid the foundation for the coming decade. The country now looks forward for the most interesting and awaited Elections this year."