Budget 2021: What corporates, investors and taxpayers are expecting from FM Nirmala Sitharaman

SUMMARY

Finance Minister Nirmala Sitharaman has tabled the Economic Survey in Parliament, here is a look at the expectations of big corporates, investors, taxpayers, healthcare sector and real estate.

By Pradeep Suresh Jan 29, 2021 4:57:00 PM IST (Updated)

The Budget 2021 session commenced in Parliament on January 29 with an address to a joint sitting of both Houses by President Ram Nath Kovind. Now that Finance Minister Nirmala Sitharaman has tabled the Economic Survey in Parliament, here is a look at the expectations of big corporates, investors, taxpayers, healthcare sector and real estate.

Big Corporates | Consistency of policy will be a key thing that corporates in India will be looking forward to in the upcoming Budget. They will also look forward to get a much benevolent tax policy from the government as the country looks to boost the economy hit hard by the pandemic. Experts in the sector also hope that any policy taken by the government will not be erratic and will be aimed at short-term growth, but sustainable in the long run.

Investors | Given the large-scale contraction faced by the economy, investors seem to be bracing to cope up with a higher tax rate in the country. However, given the appetite of foreign investors for higher-yielding debt, that India is currently popular for, a slight rise in taxation is unlikely to deter them.

Real estate | The realty sector, which suffers from both an acute housing shortage and high inventory overhang will be expecting the government to continue with steps taken towards improving affordability and moderating real estate costs and taxes, through measures such as higher income tax incentives for first-time buyers in the form of housing loan interest deduction, credit-linked subsidy schemes under PMAY for purchases in affordable and mid-housing segments. They will also bank on the government to take steps to control the cost of raw materials such as cement and steel.

Taxpayers | Individual taxpayers are not expecting a miracle given the limited resources available to the government after a challenging year. However, they would expect the government to look sympathetically toward some recommendations such as an increase of deduction limit under section 80C, deduction for COVID-19 hospitalisation under section 80DDB, the introduction of a new category of tax-saving bonds, tax incentives for non-resident investors and tax deductions for employees working from home among others.

Healthcare | With the global pandemic revealing the ability and challenges of the healthcare system, many believe it will be a defining year for the sector as the government is expected to pump large amounts into the sector that has been consistently been overlooked in previous budgets. From establishment of centrally funded medical colleges in every district in the country to steady investment and collaboration in research and development (R&D), the sector that received less than 1.3 percent of GDP last fiscal, is expecting a bonanza.