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Budget bytes: Infra status for realty missed

Demand reviver, growth booster

By SANJAY DAGA

Chief Operating Officer - Runwal

The first digital and post-pandemic annual budget exercise has delicately crafted a strategy to boost redistributive and equitable growth, reviving investment and giving fillip to ease of doing business. Union Budget 2021-22 is forward-looking document and aims to revive demand and elevate economic growth.

We welcome the government’s move to extend tax holiday by one year for affordable housing projects and exemption from TDS on dividend paid to Real Estate Infrastructure Trusts / Infrastructure Investment Trusts.

We would have expected granting Infrastructure status to the entire Real Estate sector which could be beneficial for lenders, developers and home buyers and will enable access to liquidity and speed up project completion. Setting up of Development Finance Institution to address funding gaps, highest infrastructure spending, recapitalisation of banks, boost to divestment and monetisation of government assets will surely ensure increase in the growth momentum.

Overall, the budget covers major themes such as health, which is on expected lines, sprucing up of infrastructure to ensure growth and job creation and ease of doing business. And we would also like to add that the budget is favourable for corporates and individuals, as there is no new tax burden being implemented.

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