The suggestion came up during the course of pre-Budget discussions held by finance minister Nirmala Sitharaman with regulators of the finance sector in the national capital
Financial regulators on Wednesday suggested that the government should give tax incentives to homebuyers in the Budget to tackle demand slowdown in the construction sector. The suggestion came up during the course of pre-Budget discussions held by finance minister Nirmala Sitharaman with regulators of the finance sector in the national capital. The regulators were also in the favour of giving tax relief to stock market investors in the Budget.
Sitharaman held the pre-Budget consultations as part of the meeting of Financial Stability and Development Council (FSDC). Reserve Bank of India (RBI) governor Shaktikanta Das, Securities Exchange Board of India (Sebi) chairman Ajay Tyagi, Insurance Regulatory and Development Authority (Irda) chairman Subhash Chandra Khuntia among other regulators of the financial sector attended the meeting.
The regulators made a number of suggestions during the meeting. "One of them was to look at the ways to give tax incentives to homebuyers in the Budget to boost the real estate sector. The government could consider giving tax breaks to homebuyers on purchase of more than one residential unit or in any other way," sources said.
Another suggestion was made on the long-term capital gains (LTCG) tax on equities. The regulators were of the view that investors in the capital market should be given relief by allowing adjustment of Securities Transaction Tax (STT) against LTCG tax. The government in the Budget 2018-19 brought back a 10% LTCG tax on equities while retaining the STT, a direct tax payable on the value of taxable securities transactions done through stock exchanges. However, the regulators were of the opinion that LTCG should stay as it helped in tracking transactions in the equity market.
All the regulators presented their proposals for the Budget. Sebi chairman submitted proposals on the rationalisation of markets.
On the issue of giving stimulus to the economy in the Budget, the RBI Governor said it was for the government to decide. "It is the prerogative of finance minister to take a call on such matters," he said after the FSDC meeting.
The meeting reviewed the current global and domestic economic situation and financial stability issues, including, inter-alia, those concerning Banking and NBFCs.
The Council was also apprised of the progress made towards setting up of the Financial Data Management Centre (FDMC) to facilitate integrated data aggregation and analysis as also a Computer Emergency Response Team (CERT-Fin) towards strengthening the cybersecurity framework for the financial sector.
The meeting was also attended by M S Sahoo, chairperson of Insolvency and Bankruptcy Board of India (IBBI), Ravi Mital, additional secretary of Department of Financial Services and acting chairperson of Pension Fund Regulatory and Development Authority (PFRDA) among other sector regulators and secretaries of the finance and corporate affairs ministries.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Nirmala Sitharaman")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}