Alavan Business in an interview with ET Now said that it is likely to see serious efforts to boost consumer spending in Budget 2017. It also said that some relief for realty sector could be seen in Budget. It is widely being expected that FM Arun Jaitley may provide tax sops to boost demand in the housing sector. Under the existing regime, Section 80C provides for overall deduction of R1.5 lakh for all payments, like principal amount of housing loan, insurance premium, contribution to PF, etc. This upcoming Budget is likely to provide an additional deduction for payment of the principal amount of housing loan. In the last budget, the government had allowed additional deduction of interest of R50,000 under Section 80EE for new housing loan sanctioned during April 1, 2016, to March 31, 2017. This time-limit is likely to be increased by another one-year.
Narendra Modi government will be presenting Budget 2017 on February 1. Yesterday, Supreme Court dismissed the plea to change the Budget date from February 1. The Budget is special not only for the fact that it has been preponed but more importantly because it comes within months after Modi government’s massive demonetisation drive. Most analysts and economists expect Budget 2017 to be tax-payer friendly, especially given the pain that common man has faced after old Rs 500 and Rs 1000 notes ceased to be legal tender money.
Meanwhile, the Cabinet Committee on Parliamentary Affairs (CCPA) recommended holding of the Budget Session from January 31. The first part of the Budget Session will run until February 9. The 92-year-old practice of presenting a separate Rail Budget is going to end from this fiscal, with the Finance Ministry accepting Railway Minister Suresh Prabhu’s proposal to merge it with the General Budget.
Finance Minister Arun Jaitley has indicated that railway travel may become pricier for passengers come the next financial year.