Sunil Subramaniam, Chief Executive Officer, Sundaram Mutual on Tuesday told BTVi that he expects Budget 2017 to give boost to low-cost housing and agriculture sector. He also said that the four-wheeler’s penetration in India is still very low and a huge demand for low-end four wheelers in India is expected. It is widely being expected that FM Arun Jaitley may provide tax sops to boost demand in 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 additional deduction for payment of 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 demonestisation 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 till 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.