Budget 2023: Salaried class expects increase in standard deduction; realty sector is looking for affordable housing
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Synopsis
The real estate sector plays a crucial role in driving economic growth. It not only accounts for around 7% of the annual GDP but also provides employment for over 50 million people.
Salaried class
• Similarly, there is also a need to increase the deduction for health insurance under section 80D from Rs 25,000 to Rs 50,000.
• Likewise, the limit for standard deduction under section 16 should be increased from Rs 50,000 to Rs 75,000.
Real estate sector:
Stocks Recommendations
- Since inclusiveness, in large measure, has indeed been enabled by smartphones, the recent introduction of 5G networks should be accelerated through government incentives eg. 5G towers to be rapidly constructed leveraging solar energy.
Automobile
- It is expected that the government will develop policies to support sustainable technologies and that the promotion of green vehicle usage will be included in these policies. It is also expected that the government will work to increase the adoption of electric vehicles in India.
MSMEs
- The budget should include tax incentives for capital or operational expenses incurred while implementing new-generation technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Machine Learning (ML). Additionally, ASSOCHAM's suggestion of reducing the interest rate for late payment of GST from 18% to 12% is correct.
- Given the prevailing difficulties in the supply chain and also in constrained working capital requirements, Micro and Small Enterprises (MSMEs) require an improved access to credit. Accordingly, Budget 2023 should further simplify and liberalize the Credit Guarantee Scheme.
- The Budget should announce a complete integration of e-Shram, Udyam, National Career Service, and ASEEM portals.
(The author is Founder and MD – MyMoneyMantra.com)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)