The union budget 2015-16 is very progressive and pro reform, as it aims to accelerate the growth rate of the country, especially measures to curb black money and creating job through reviving growth and investment will act as strong stimulants to drive the economy further ahead. Also the proposal to reduce the rate of corporate tax to 25 % from the current 30 % over the next four years along with abolition of wealth tax is a big impetus to the entire India Inc. Government has also announced steps to streamline its internal systems and policies by introducing The Procurement Law.
In the Real Estate sector, the exemption of capital gains to Sponsors upon REIT Listing is a welcome move. But to make REIT successful, few more tax incentives needs to be provided. However, in order to achieve ‘Housing for all’ by 2022, the government should provide more support / incentives to home buyers. Also, increase in the service tax would lead to pressure on Rental for commercial property but it has to be taken as a positive move for larger goal of GST introduction in April2016Tax incentives to individuals given in the form of long term savings in the Pension schemes will provide social security. This in turn will also channelize savings towards development of long term infrastructure.
It is overall a promising budget. The government has meticulously framed the biggest financial statement of the country as it lays down the road map for the future course of action, towards a strong and robust economy.
