We, at Apaha Trainers and Consultants always strive to enhance the knowledge and skills of our buddying civil engineers. With this thought and with the presentation of Union Budget of India 2020, we are sharing some of the key aspects of the budget 2020 related to the construction industry (Impact of Budget 2020 on Construction Industry), which you as a civil engineer might be interested in.
The massive funding which was already allotted to infrastructural development has been further stepped up in the budget 2020. As the NHAI has been lagging in commissioning roadworks to date, accelerated development of highways shall be undertaken. Further, before the year 2024, monetization of 12 lots of highway bundles which are more than 6,000 km will take place. Under the government’s UDAN scheme, additional 100 airports shall be added and the aircraft fleet is planned to be doubled. Furthermore, electrification of Indian railways shall be done and more trains such as ‘Tejas’ are planned to be introduced for connecting major cities across the nation.
In line with the previous budget’s focus on the affordable housing, tax benefit on affordable housing loans have been extended by a year in case of the loans which are sanctioned till March 2021. Such a move has been designed to push more and more first-time homebuyers, so as to enter the market.
Further, the date of approval of the tax holiday in the case of the developers of affordable housing shall be extended by a year. Such an extension would encourage developers to transition into affordable housing, as the luxury segment is already reeling because of overexposure and under consumption.
Concession on Real Estate Transactions
As per the current provisions of the Income Tax Act 1961, during the sale of immovable property, if the consideration value is less than the circle rate by more than 5%, the difference is considered as income, both in the hands of the purchaser as well as the seller. This limit of 5% has been increased to 10%, so as to minimize the hardships in real estate transactions and provide relief to the sector. Such a move may trigger investors to re-enter in the market which is suffering because of cash crunches.
Personal Income Tax and Simplification of Taxation
In order to increase the mass consumption and spending, by leaving significant money in the hands of taxpayers, a new and simplified personal income tax regime has been introduced. In this regime, income tax rates have been significantly reduced for the taxpayers, who choose to forgo certain exemptions and deductions.
With all these developments in place, as the government is trying to uplift the construction industry, there is also a great opportunity for civil engineers to build a strong foundation for their careers.
Impact of Budget 2020 on Construction Industry by Apaha Trainers and Consultants. Impact of Budget 2020 on Construction Industry by Apaha Trainers and Consultants. Impact of Budget 2020 on Construction Industry by Apaha Trainers and Consultants. Impact of Budget 2020 on Construction Industry by Apaha Trainers and Consultants. Impact of Budget 2020 on Construction Industry