Budget 2018: Live updates


Table of Contents

 


 

2018-02-02 | 7:28 PM

Budget 2018: A lot more could have been done, say home buyers

With the Union Budget for 2018-19 out of the way, Housing.com News spoke to several property seekers across the country, to find out what they thought were the highlights and whether the budget would make their lives easier in any way. So, finally, here’s the main verdit that matters – the aam aadmi’s verdict.

Budget 2018: A lot more could have been done, say home buyers

 


 

2018-02-02 | 7:19 PM

A populist budget, but not for real estate

Finance minister Arun Jaitley’s Union Budget for 2018-19, by and large did not have any major announcements for the real estate sector. While developers have termed Budget 2018 as a pro-buyer populist budget, home buyers point out that it is not a pro-home buyer budget. We look back at what the real estate sector expected and what the finance minister delivered.

 


 

2018-02-02 | 5:17 PM

Smart cities mission gets a 54 per cent hike in Budget 2018

With maximum increase in allocation to the Smart Cities Mission, the Housing and Urban Affairs (HUA) ministry’s budgetary provisions have been pegged at over Rs 41,765 crores for the next fiscal, a hike of 2.82 per cent over 2017-18.  The Smart Cities Mission, under which the ministry has announced 99 cities for central assistance, got the highest hike of 54.22 per cent, with Rs 6,169 crores, as against Rs 4,000 crores in the 2017-18 Budget.

 


 

2018-02-02 | 5:08 PM

Not enough measures to tackle pollution, say green bodies

Presenting his fifth straight budget in the Lok Sabha, union finance minister Arun Jaitley, on February 1, 2018, said that a special scheme will be executed with the Delhi government and adjoining states, to address the rising air pollution in the national capital. A special scheme will be implemented to support the efforts of the governments of Haryana, Punjab, Uttar Pradesh and the NCT of Delhi, to address air pollution and to subsidise machinery required for in-situ management of crop residue, the minister said. However, green bodies lamented that the ‘national emergency’ was only tackled briefly and no mention was made, about the National Clean Air Program.

 


 

2018-02-02 | 4:56 PM

Infra experts say budget’s sectoral focus to boost economy

Terming the Budget as populist, the infrastructure industry has welcomed the government’s focus on the sector, saying it will provide the necessary impetus, as the economy is pegged to grow at 7-7.5 per cent for 2018-19. In his budget, finance minister Arun Jaitley has pegged capex at Rs 1.48 lakh crores for Railways, while allocating Rs 6,602.86 crores for the aviation sector.

 


 

2018-02-02 | 4:02 PM

Aviation sector welcomes emphasis on airport infrastructure

The aviation industry has welcomed the proposal in the Union Budget 2018-19, to enhance airport capacity by five times but has demanded swift execution, to meet the infrastructure shortfall. Finance minister Arun Jaitley in his budget presentation said that the government proposes to expand airport capacity by more than five times, to handle a billion passengers a year, adding that the balance sheet of the Airports Authority of India will be leveraged, to raise more resources for funding expansion works.

 


 

2018-02-02 | 9:00 AM

 


 

2018-02-01 | 7:27 PM

Budget 2018: Is there a hidden silver lining for the real estate sector?

There were no major direct announcements related to realty sector, in the Union Budget 2018-19. However, there is an expectation in the market that certain announcements made by the government, such as the tntroduction of standard deduction, focus on infrastructure development, the dedicated fund for affordable housing, imposition of long-term capital gains tax on equity-related investments and  the cut in the corporate tax, could boost the real estate sector indirectly.

 


 

2018-02-01 | 7:03 PM

Proposed income tax changes, for transfer of real estate

Finance minister Arun Jaitley has proposed several changes, vis-à-vis capital gains taxation on the transfer of immovable properties in Budget 2018. The changes include rationalisation of capital gains taxation on the difference between apparent consideration and circle rates and also an increase in the holding period for capital gains bonds. We explain the impact it will have on home buyers as well as sellers.

 


 

2018-02-01 | 6:46 PM

Budget 2018: Very few positives for real estate

Home seekers across the major housing markets of India, were hoping for some announcement in Budget 2018 that would make it easier to buy their dream homes. However, at the end of the one hour and 50 minutes speech by finance minister Arun Jaitley, many are disappointed. Buyers opine that the sudden shift towards the rural and farm sector, in the last full budget presented by this government, indicates that this was election-oriented budget. Here’s what buyers and developers had to say, about Budget 2018.

 


 

2018-02-01 | 4:37 PM

Government allocates Rs 5.97 lakh crores for infra spending in 2018-19

In order to create employment and aid growth, the government has increased budgetary and extra budgetary expenditure on infrastructure for 2018-19 to Rs 5.97 lakh crores, from Rs 4.94 lakh crores in 2017-18, finance minister Arun Jaitley said. National Highways exceeding 9,000 kms will be completed in 2018-19, while the Indian Railways has been allocated capital expenditure of Rs 1,48,528 crores .

 


 

2018-02-01 | 4:34 PM

Exemption on interest income for senior citizens hiked to Rs 50,000

Announcing a series of benefits for senior citizens, finance minister Arun Jaitley, said the exemption limit on income from interest for them has been raised five times, to Rs 50,000 per year. At the same time, the finance minister raised limit of deduction for health insurance premium and medical expenditure to Rs 50,000, from Rs 30,000 under section 80D. The Budget has also increased the limit of deduction for medical expenditure in respect of certain critical illness to Rs one lakh in respect of all senior citizens, under section 80DDB.

 


 

2018-02-01 | 4:32 PM

Bonanza for Mumbai, Bengaluru suburban rail commuters

Finance minister Arun Jaitley, on February 1, 2018, announced the expansion of the Mumbai suburban train network, spread over 465 kms, at a cost of Rs 11,000 crores and said the government also planned to allocate Rs 40,000 crores for the city’s rail network. He also announced a corpus of Rs 17,000 crores, for the local rail network in Bengaluru, the capital of Karnataka, which goes to polls later this year.

 


 

2018-02-01 | 4:29 PM

Salaried class to get Rs 40,000 tax deduction on transport, medical expenses

Giving a relief to the salaried class, finance minister Arun Jaitley has proposed a standard deduction of Rs 40,000, in lieu of transport allowance and medical reimbursement, entailing a revenue sacrifice of Rs 8,000 crores.  The standard deduction, which is provided to salary earners, was discontinued from the assessment year 2006-07. The minister, however, did not propose any change in the tax slabs or rates for individual taxpayers. Experts, however, said that it is a very nominal benefit to the salaried class.

 


 

2018-02-01 | 4:27 PM

Government introduces long-term capital gains tax on equities

The government has introduced long-term capital gains tax of 10 per cent, on stock market gains exceeding Rs one lakh, in the Union Budget 2018-19.  Presenting the Budget proposals for 2018-19, on February 2, 2018, finance minister Arun Jaitley said returns from the stock market are quite attracting and it was time to bring them under the ambit of capital gains tax.  “I propose to tax such long-term capital gains exceeding Rs one lakh, at the rate of 10 per cent, without allowing the benefit of any indexation,” he said.

 


 

2018-02-01 | 3:00 PM

 


 

2018-02-01 | 1:49 PM

Budget reaction

–  Mr Mukund Patel – MD of Rutu Group Companies

The budget has been along expected lines. However, the budget’s affirmation to affordable housing is a positive step. The affordable housing fund can also act as a stimulus for the real estate industry, driving demand for homes that’s both, affordable and aspirational. Furthermore, the tax incentive for corporates will also provide a fillip for the real estate industry, as the added liquidity can free up resources to further consolidate the growth of the industry.

 


 

2018-02-01 | 12:53 PM

FM tables the Budget

Housing News Desk

The finance minister has wound up his budget speech and tabled the Budget in the house. In doing so, the government raised its fiscal deficit estimate for 2017-18 to 3.5 per cent of GDP, against 3.2 per cent earlier and it has been pegged at 3.3 per cent for FY19.

 


 

2018-02-01 | 12:42 PM

Capital gains on immovable property

Housing News Desk

“Currently, while taxing income from capital gains, business profits and other sources in respect of transactions in immovable property, the consideration or circle rate value, whichever is higher, is adopted and the difference is counted as income both in the hands of the purchaser and seller. Sometimes, this variation can occur, in respect of different properties in the same area, because of a variety of factors including shape of the plot and location,” says Jaitley.

Thus, in order to minimise hardship in real estate transaction, the finance minister has proposed to provide that no adjustment shall be made, in cases where the circle rate value does not exceed five per cent of the consideration.

 


 

2018-02-01 | 12:29 PM

Income taxes

PTI

No change in personal income tax rates, says FM Jaitley.

Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers, says FM.

Senior citizens allowed Rs 50,000 deduction on health insurance premium paid in a year from earlier Rs 30,000: FM.

Reduced corporate tax by 25 per cent extended to companies, with turnover of Rs 250 crores to benefit small, micro and medium enterprises: FM.

Education cess increased to four per cent from three per cent, to collect additional Rs 11,000 crores, says FM.

 


 

2018-02-01 | 12:22 PM

Budget reactions

– Joe Verghese, managing director, Colliers International India:

The focus and boost for agriculture in Budget 2018 provides an opportunity for warehousing investment firms to invest in building warehousing/ cold storage facilities across our agricultural belts.

Sanjay Chatrath, executive director, NCR, Colliers International India:

Increased investment and number of airports will lead to several aerotropolis projects, like development of office buildings, shopping malls, hotels, entertainment complexes, manufacturing, assembly, logistics and warehousing facilities around the airports.

 


2018-02-01 | 12:16 PM

InvITs

PTI

Government will monetise select central public sector enterprises, using Infrastructure Investment Trusts (InvITs), says FM.

 


 

 

2018-02-01 | 12:05 PM

Mumbai, Bengalauru trains

Housing News Desk

“Mumbai’s transport system, the lifeline of the City, is being expanded and augmented to add 90 kilometers of double line tracks at a cost of over Rs 11,000 crores. 150 kilometers of additional suburban network is being planned at a cost of over Rs 40,000 crores, including elevated corridors on some sections.

“A suburban network of approximately 160 kilometers at an estimated cost of Rs 17,000 crores, is being planned to cater to the growth of the Bengaluru metropolis,” says the FM.

 


 

2018-02-01 | 12:01 PM

Rail, road and air

PTI

National Highways exceeding 9,000 kms will be completed in 2018-19, says FM.

Over Rs 1.48 lakh crores, to be allocated for railways in next fiscal: FM.

Govt to expand capacity of airports by five times to cater to one billion trips a year: Jaitley.

Regional air connectivity scheme shall connect 56 unserved airports and 31 unserved helipads: FM.

 


 

2018-02-01 | 11:51 AM

Infrastructure

Housing News Desk

FM says:

India needs an estimated Rs 50 lakh crores worth of investments in infrastructure.

Urbanisation is our opportunity and priority.

115 ‘aspirational districts’ have been selected to make them model districts of development.

Rs 2.04 lakh crores will be spent on the Smart Cities Mission.

 


 

2018-02-01 | 11:43 AM

Rural electricity

PTI

Rs 16,000 crores to be spent on providing electricity connection to four crore poor households, says FM.

 


 

2018-02-01 | 11:37 AM

Pollution in the NCR

Housing News Desk

Air pollution is a matter of concern, says Jaitley. Special scheme to tackle pollution in the national capital to be formed and will include states of Haryana, Punjab UP and the NCT of Delhi through use of in-situ machinery for disposing crop residue: FM Arun Jaitley

 


 

2018-02-01 | 11:29 AM

Affordable housing fund

Housing News Desk

FM announces that the government will set up a dedicated affordable housing fund under the NHB for priority sector lending.

One crore houses to be built under the Pradhan Mantri Awas Yojana (PMAY)
in rural areas.

Ease of credit to affordable housing buyer also expected.

 


 

2018-02-01 | 11:20 AM

Govt to focus on ‘ease of living’

PTI

FM says:

Demonetisation has reduced cash in economy, promoted digital transactions.

Introduction of GST has made indirect tax system simpler.
Govt focusing on ease of living now.

 


 

2018-02-01 | 11:11 AM

Jaitley Begins his budget speech

Housing New Desk

India has become a 2.5 trillion-dollar economy, says Jaitley. It is presently the seventh largest economy and will soon become the fifth largest. Economy to grow by 7.2-7.5 per cent in second half of current fiscal, says FM. The IMF has forecasted that India will grow 7.4 per cent next year, says Jaitley

 


 

2018-02-01 | 10:15 AM

Stocks in the green

Housing News Desk

Real estate and infrastructure stocks have been trading in the green, prior to the announcement of the Union Budget 2018-19.  The Sensex and Nifty also gained, with the US Federal Reserve’s decision to keep rates unchanged.

 


 

2018-02-01 | 10:05 AM

FM reaches Parliament for Budget 2018

Housing News Desk

The finance minister Arun Jaitley has reached the Parliament, to present the last full budget before the general elections in 2019. The budget speech is likely to begin at 11 AM.

Budget 2018 Jaitley leaves for Parliament

Image source: PIB

 


 

2018-02-01 | 7:08 AM

Sops versus fiscal prudence: Tough task for FM in Budget 2018

PTI

Finance minister Arun Jaitley will, today (February 1, 2018), present the current NDA government’s fifth and arguably his toughest budget yet, as he seeks to address agriculture distress, create jobs and boost growth, while at the same time stick to fiscal prudence.

The Budget, in view of upcoming assembly polls in eight states – including three major states ruled by the BJP – and general elections next year, may see new rural schemes and stepping up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

With the recent elections in Gujarat indicating erosion of BJP’s rural vote base, Jaitley may also unveil incentives for the farm sector. Small businesses, which have traditionally formed the core support base of the BJP, too may get some sops to ease pain caused to them due to chaotic rollout of the Goods and Services Tax (GST) and demonetisation.

There is also an expectation that common man may get some relief in income tax by way of a raise in the exemption limit. Also on Jaitley’s menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

However, he has to do all this while sticking to the road map of narrowing one of Asia’s largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

 


 

2018-01-31 | 5:00 PM

Can the government afford a populist Budget 2018, for real estate?

Finally, a pinch of reality… With real estate being a key contributor to the GDP and the job market, it is no surprise that the real estate fraternity, as well as home buyers, are expecting major sops. However, the critical issue ahead of the Union Budget 2018-19, is whether the state of economy allows the government to grant a bonanza.

 


 

2018-01-31 | 4:00 PM

Home buyers’ wish-list

We at Housing.com News spoke to several home seekers across the country, to gauge what they feel the finance minister Arun Jaitley can do in the Union Budget 2018-19, to make it easier for them to own their dream homes. Here’s their wish-list:

Budget 2018: What do home buyers want from the finance minister

 


 

2018-01-31 | 3:00 PM

Budget 2018: Top 5 expectations of the real estate sector

From industry status, to single-wingow clearances and GST, here’s a look at the top five expectations of the stakeholders in the real estate market, vis-a-vis the Union Budget 2018-19.

 


 

2018-01-31 | 2:30 PM

Budget expectations

– Ram Walase, MD & CEO, VBHC Value Homes Private Ltd

The industry is facing a number of challenges including muted sales and stagnated price points, whereas the inputs costs are stable or higher. Therefore the budget could focus on the following :

(a) Improve demand side incentives such as : (i) Increased allocations and amount of subsidy per user under the credit-linked subsidy scheme (CLSS), (ii) Increase interest rebates in income tax, (iii) Removing the limit of Rs two lakhs as loss from House Property for first time home buyers so that full interest benefit can be claimed.

(b) Incentivise supply side by : (i) Relaxing the definition of affordability within metros to include homes upto 60 sq m of carpet under affordable housing category, (ii) Cheaper debt funding options for affordable housing, (iii) Bring land transactions under GST so that stamp duties and other costs can be included in the input credit, (iv) Announce reforms that will facilitate cheaper FSI / land in corridors with better transportation and social infrastructure, (v) Increase the timeline under Section 80IBA of the Income Tax Act which provides benefit to affordable housing from the current March 2019 to at least March 2021.


 

2018-01-31 | 2:00 PM

Budget 2018: What do home loan borrowers need

With many first-time home buyers opting for housing loans, we look at some of the measures that the finance minister can consider in the Union Budget for 2018-19, to ease the burden on such buyers and encourage the ‘Housing for All’ mission

 


 

2018-01-31 | 1:30 PM

Budget expectations

– Sunil Aggarwal, associate dean and director, RICS SBE

Industry status: In the Budget of 2017, the government accorded industry status to the affordable housing segment. In this year’s Budget, we would like to see industry status conferred on the entire real estate sector. Without an industry status, developers are forced to borrow at high interest rates and comply with stringent evaluation process.

Tax exemption for REIT investors: In the case of REIT’s, it would really help if the government looked at 100% tax exemption for Indian investors. There should also be waiver of capital gains for the developer at the time of transfer of property into REIT and removal of service tax on lease premises.

Bring real estate under GST: Real estate sector should be brought under the purview of GST. We expect rationalisation of GST rate at 12 per cent and inclusion of stamp duty under GST.

Tax incentive for first time home buyers: A first time homebuyer can claim an additional tax deduction of up to Rs 50,000 per financial year on home loan for both principal repayment and the interest paid. The additional deduction is given on loan up to Rs 35 lakh, only if the property value does not exceed Rs 50 lakh. We believe the deduction should be extended to all first time home buyers, irrespective of the property value. Also, tax concessions on house insurance premiums could be introduced to encourage home buyers to insure their homes.

Insurance for land title: The government must incentivise land title insurance. Land title insurance will protect potential land/property owners, against loss from defective titles.

Additional investment in infrastructure development in metro cities: The upcoming Budget should allocate a specific amount for developing infrastructure and improving connectivity in the peripheral areas of cities, especially the metros. Without this, it will be difficult to provide affordable housing in cities.

 


 

2018-01-31 | 1:00 PM

Budget 2018: Government needs to boost skill and infrastructure development in realty

Skill development and infrastructure growth, can complement each other and also boost the real estate sector. We look why these sectors warrant special attention and what the government can do, in Budget 2018.

 


 

2018-01-31 | 12:00 PM

Budget 2018: What do home buyers and developers want?

A friendly budget is always on the wish-list of everyone. As the Union Budget for 2018-19 approaches, the moot question is whether the budget should be buyer-friendly or builder-friendly and whether both the stakeholders are on the same page, this time around? To understand this let us first look at the wish list of each segment.

 


 

2018-01-31 | 11:00 AM

Economic Survey 2017-18 highlights

The Economic Survey, which is prepared by the Department of Economic Affairs of the Finance Ministry of India, reflects the ministry’s view of the economic development of the country in a given year. The Survey, which is tabled before the Union Budget, often provides a fair indicator of what the focus areas of the government ought to be and what we can expect from the budget.

Here’s a snapshot of the main points of the Economic Survey 2017-18

Economic Survey 2017-18 Highlights

According to the Economic Survey, the agenda for the next year, will include ‘Stabilising the GST, resolving the long-festering Twin Balance Sheet (TBS) problem, privatising Air India and staving off threats to macro-economic stability’. Employment, education and agriculture to be the focus areas in medium-term, says the Survey.

 

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