The budget is positive for real estate, but not favourable for deficit target, says Prateek Pant
Prateek Pant
Prateek Pant, Head of Products and Solutions, Sanctum Wealth Management discusses what he likes and dislikes in the interim Budget 2019.
What works
The budget has focused on salaried and middle-class citizens by reducing the tax outgo on individuals with income up to Rs 5 lakh. This effectively leads to no tax outgo for income up to Rs 7 lakh.
Capital gain rollover under Section 54 has been increased from one house to two houses for capital gains up to Rs 2 crore. This will benefit the dwindling real estate sector as well.
What doesn't work
Further to a shortfall in GST collections, an additional expenditure of Rs 20,000 crore towards PM Kisaan Samman Niddhi makes achieving the deficit target of 3.4 percent difficult.
Capital expenditure may again be sacrificed next year to keep the fiscal deficit under control to accommodate Rs 75,000 crore towards PM Kisaan Samman Niddhi.You can now invest in mutual funds with moneycontrol. Download moneycontrol transact app. A dedicated app to explore, research and buy mutual funds.Indian Union Budget 2019: What does the FM have up his sleeve in the run up to the General Elections? Click here for live Budget 2019 news, views, analyses and more.
First Published on Feb 1, 2019 05:42 pm
