BENGALURU: For the IT city, Friday’s budget was a mix of great announcements and a few disappointments. The abolition of angel tax for startups, which was a major demand from the city, was not directly announced in the budget. However, the announcement of doing away with the scrutiny of valuation of documentation on angel tax was a welcome one.

What drew criticism was the hike in petrol and diesel prices due to the increase in excise duty and cess.  Other proposals, however, like the introduction of aircraft financing and leasing, as well as the focus on sustainable housing were welcomed by the state’s industry.

On the angel tax issue, Ankur Pahwa, Partner and National Leader – E-Commerce and Consumer Internet, EY India, said, “The government has taken note of the asks and has answered by stating that startups will not be subject to angel tax scrutiny where the relevant startups and investors file certain declarations; we will have to wait for the final notification for any finer points.”

For the real estate sector, there were a few misses. But the additional exemption of  Rs 1.5 lakh on the interest paid on housing loans, over and above the existing Rs 2 lakh for properties valued up to Rs 45 lakh, was welcomed. “This will significantly benefit first-time home buyers who will enjoy the benefits of interest subvention under the CLSS scheme and the tax benefits announced,” said Ramesh Nair, CEO and Country Head for JLL India.

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) welcomed the budget and said the announcement of a pension for retail traders and shopkeepers with annual turnover of less than Rs 1.50 crore was a good move.

“However, FKCCI expresses its concern over the hike in excise duty on petro and diesel by Re 1. While we had asked for abolition of angel tax on startups, this has not been considered,” said C R Janardhana, president, FKCCI.

Commenting on the government proposal to allot homes to all by 2022 under the PM Awas Yojana, Devesh Agarwal, president of the Bangalore Chamber of Industry and Commerce (BCIC), said, “Providing land from public sector enterprises for affordable housing will help solve land acquisition problems.”