INFRASTRUCTUREREALESTATE

TELECOMMUNICATIONENERGY AND

EXPORT SECTORBY

GERIN

SANJAY

REAL ESTATE:

• Real estate is property consisting of land and the buildings on it along with its natural resources such as crops, minerals or water immovable property of this nature an interest vested.

• In this also an item of real property, more generally buildings or housing in general.

• It is a legal term used in jurisdictions such as India, the united States, United Kingdom, Pakistan, Australia, and New Zealand.

HIGH EXPECTATIONS FROM THE BUDGET IN THE REAL ESTATE SECTOR IN FEBRUARY 2017• The exemption of the interest alone on the Home Loan should go up from the

present Rs.1.50 Lacs to at least Rs.5.00 Lacs.

• this is suggested keeping in mind the average ticket size of the price of the apartment has grown 200% over the past few years.

• The buyers should be allowed to cross purchasing like one should be allowed to invest in Residential Properties from the Sale of Commercial Properties and from the Amounts Received from the Sale of Commercial Properties to Purchase of Residential Properties

• Also buyers should be allowed to investment in both Commercial and Residential properties from the proceeds of one single property so that a good portfolio for the property buyers/investors can be built out.

UNION BUDGET 2017 ON REAL ESTATE SECTORThree colossal challenges facing the sector today are access to low-cost finance, a painfully tedious process of getting project approvals and little clarity on land titles.

• Tax exemption to home buyer

• Low cost housing

• Foreign investment.

TAX EXEMPTION TO HOME BUYER

• While property prices have risen substantially with time, the corresponding increase in the deduction limit for principal repayments on home loans, available under the Income Tax Act.

• It has remained limited to Rs.1,50,000/-. Further the home loan principal repayments are clubbed with other tax saving instruments.

• There is a strong case that the deduction for principal repayment should be considered for a separate standalone tax exemption rather than being clubbed under section 80C of the Income Tax Act.

• Also the benefit of tax exemption should be available from the date of booking the property and not from the date of possession.

LOST COST HOUSING

• Presently not many developers are making low cost housing and/or housing for the economically weaker section.

• Special incentives should be given to developers to make smaller affordable houses as majority of the middle class and lower income persons by default require living in rental apartments and/or particular locality due to non-availability of low cost housing.

FOREIGN INVESTMENT

• Both the Centre and state must work together to remove bottlenecks for faster implementation of reform measures in order to promote FDI in real estate.

• Permitting FDI in limited liability partnership (LLP) realty firms

• Lowering home loan rates in order to increase buyers’ purchasing power and partially offsetting a likely slump in real estate prices due to demonetization.

TELECOMMUNICATIONS:

• Telecommunication is the transmission of signs, signals, messages, writings, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems.

• Telecommunication occurs when the exchange of information between communication participants includes the use of technology.

• It is transmitted either electrically over physical media, such as cables, or via electromagnetic radiation.

GONVERNEMNT HALVES REVENUE ESTIMATE FROM TELECOM TO RUPEES 44,300 CRORE• Government has slashed revenue expectation from the telecom

sector by 55 percent to 44,342.2 crore for 2017-18 indicating no sale of airwaves for mobile services next fiscal.

• The government has pegged revenue from communications at rs 44342.2 crore, which includes license fees from telecom service providers and one time entry fees from new operators.

• In 2016-17 the government had estimated revenue of rs 98,994 .93 crore from telecom sector which included about rs 64000 crore from spectrum auction and the rest from license fees and other charges.

EXPECTATIONS FROM INDIAS TELECOM SECTOR• Recognized as the world’s second largest telecom market globally,

India’s mobile revolution is difficult to ignore.

• Prashant Singhal, Global Telecommunications Leader, E Y sees 2017 an exciting year for this sector, as the sector is seeing a massive disruption and consolidation in the last one year.

• “Factors such as increasing pressure on profitability, hyper-competition, spectrum trading and sharing guidelines and favourable M&A policy, in addition to a number of spectrum trading and sharing deals were seen in the past months,” he mentioned and these need to be reflected in the Union Budget 2017.

HOW TO SET THE RIGHT TONE FOR TELECOMS GROWTH• Steady growth and expansion of telecom sector is fundamental for

the government’s ‘Digital India’ program that is poised to redefine the lives of its 1.25 billion citizens.

• Non-applicability of withholding tax provisions on payments made for spectrum trading/sharing.

• TDS on telecommunication charges paid to foreign operators.

• Applicability of section 194H of the Act to discount extended to pre-paid distributors

TELECOM INDUSTRY DEMANDS LOWER TAX RATES• Telecom companies transfer prepaid vouchers and SIM cards to

independent distributors at a discount, who further sell it to retailers and/ or subscribers.

• Discounts are allowed to them who doesn’t qualify as commission for the purpose of section 194H of the act.

• No payment/ credit towards the discount allowed to the distributors is made by the telecom companies.

• Considering the low margins earned by the distributors, a lower/minimal withholding tax rate (say 2%) may be prescribed.

UNION BUDGET 2017

• the second-largest telecommunications market in the entire world.

• There are about 1 billion mobile users in India, out of which 40-45% are smart phone users.

• In the year 2016, the manufacturing industry faced some challenges and opportunities.

• The Telecom & Manufacturing sector is looking forward to the Union Budget to have some intriguing incentives.

• Zopo mobile is the India's fastest growing and leading mobile brand has proposed a few measures to boost the manufacturing sector.

ENERGY SECTOR

• For strengthening our Energy sector, Government has decided to set up Strategic Crude Oil Reserves.

• In the first phase, 3 such Reserves facilities have been set up. Now in the second phase, it is proposed to set up caverns at 2 more locations, namely, Chandikhole in Odisha and Bikaner in Rajasthan. This will take our strategic reserve capacity to 15.33 MMT.

In solar energy, we now propose to take up the second phase of Solar Park development for additional 20,000 MW capacity.

EXPORT INFRASTRUCTURE

• A new and restructured Central scheme, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18.

• The total allocation for infrastructure development in 2017-18 stands at Rs 3,96,135 crores.

SUGGESTION

• Money spent on renewable energy source should be exempted from income tax, this will promote citizens to adopt clean energy

• And for making easy way to receive foreign biz.. And payments, small traders and entrepreneurs in china they are receiving business payments through MONEYGRAM, from individuals as business transaction payments, this will boost their manufacturing units in micro and small sectors and this increases their foreign inward payments

• Eg; alibaba, made in china etc.,.. Are doing and more over small enterprises are well versed in customs and duties and fright charges

THANKYOU