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Budget 2012 Impact on Real Estate _ Infrastructure.pptx

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					                  Budget 2012
Impact on Real Estate & Infrastructure
                      1 August 2009
EXPECTATIONS
Real Estate

• Industry Status
• Exclusion from Service tax
• Upward revision on deduction on interest on
  housing loan of self occupied houses
• Separate deduction on housing loan for
  individual home buyers
• Clarity on rental income by developers
Infrastructure

• More avenues for raising funds for
  infrastructure projects
• Exclusion from the provisions of MAT
BUDGET IMPACT
Policy Measures

• ECBs to be permitted in low cost affordable
  housing projects
• Mortgage guarantee trust fund
• Scheme of 1% interest subvention to be
  extended to the new year for loans upto 15
  lacs for houses valued upto 25 lacs
• Rural Housing fund increased from Rs. 30
  billion to Rs. 40 billion
Cont…
• Infrastructure debt fund of initial size of
  8000 crs launched
• 60,000 crs to be raised through tax free
  bonds in FY 2012-13 for infra projects
• Target of covering 8800 kms of roads in
  NHDP
• ECB for capital expenditure on
  maintenance and operation of toll systems
• Central assistance of 18500 cr for DMIC
  spread over 5 years
Direct Tax Proposals

• Lowering of withholding tax on interest on
  ECBs from 20% to 5% for next 3 years on
  affordable housing projects
• Benefit of investment linked deduction on
  capital expenditure on affordable projects
  under a central / state scheme notified by
  CBDT.
• Tax to be withheld @ 1% on transfer of
  immovable property
Cont..
• Relief from long term Capital gains tax if
  proceeds re-invested in
–   Start up capital of new manufacturing venture in SME sector
–   Funds utilised for purchase of plant and machinery

• Exemption of Income of SEBI registered
  VCF / VCC extended to real estate sector
• Beneficial rate of 5% on for 3 years starting
  1st July 2012 to Non residents / Foreign
  companies extending foreign currency
  loans to certain infra projects like dams,
  ports, roads, shipyards, power projects
Indirect Tax proposals

• General Service tax increased from 10.3%
  to 12.36%
• ST under works contracts composition
  scheme increased from 4.12% to 4.944%
• Shift from positive list to negative list
  proposed under ST law
• Exemption from ST to low cost housing (
  <60 sq mts)
• Value of services under works contracts
Cont..

• Total value of good minus the value of
  goods transferred
• Time limit for issuance of taxable invoice
  increased form 14 days to 30 days
• Peak excise duty increased from 10% to
  12% effective 17th March 2012.
• Effective peak customs duty on import
  increased from 26.85% to 28.8 5% effective
  17th March 2012
Thank You

				
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