From real estate to metals, what Sitharaman's Budget has in store.
Real Estate & Infrastructure
What was expected?
- Extension of sunset date for obtaining approval from competent authority in case of affordable housing projects
- Enhancement of deduction of interest on funds borrowed for purchase of house property, including affordable housing
What was delivered?
- Affordable housing projects eligible for tax holiday, now extended to cover projects approved till 31 March 2022. Benefit also extended to developers of affordable rental housing projects.
- Loan sanction date extended to 31 March for additional interest deduction for affordable residential house
Automotive
What was expected?
- Incentivize vehicle scrappage policy
- Increased focus and government spend on transport sector
- Resolution of inverted duty structure for electric vehicle sector
- l Reduction of GST rates on vehicles for entry level vehicles
What was delivered?
- Introduction of scrapping policy for old and unfit vehicles
- Government to spend INR 18,000 crore to augment public bus transportation in India
- Increase in BCD on specified auto parts
IT & Telecom
What was expected?
- Clarity on applicability of withholding tax on cloud-based transactions
- Favourable policies for creating digital infrastructure and ecosystem
- Incentives for research and development of next-gen technologies
What was delivered?
- Withholding tax @ 0.1% on purchase of goods in excess of 50 lacs
- To incentivise digital transaction, limit for tax audit for persons with 95% digital transactions increased from 5 crore to 10 crore
Financial Services
What was expected?
- Increase in FDI in insurance sector
- Divestment of government stake in PSBs
- Tax rationalisation for foreign bank branches to ensure a level-playing field
What was delivered?
- FDI limit in Insurance sector increased from 49% to 74%
- Privatization of 2 PSBs and 1 General Insurance company has been proposed in addition to capital infusion of 20,000 crores in PSBs
- Relaxed 'Demerger' provisions for PSUs
Metals
What was expected?
- Reduction in customs duties for Gems and Jewellery
- Reduction in customs duties on metals & elimination of GST compensation cess on coal
- Review of anti-dumping for various steel products
What was delivered?
- Reduction in BCD on gold silver to 7.5%
- Reduction in BCD on specified iron, steel & copper items
- Temporary revocation of anti-dumping duties for specified steel items
Disclaimer: The data have been provided by EY. Neither EY nor Business Standard is liable for any action taken on the basis of this data