Comments on Corporate Tax Cut by Anuj Puri - ANAROCK Property Consultants
Indian stock markets cheered the decision of cut in corporate taxes. However, the impact of this major decision will be seen on many sectors and economy will get the much-needed government boost.
Comments on today's decision to cut corporate taxes by Anuj Puri, Chairman – ANAROCK Property Consultants follow....
In another positive and a bold step to help revive the economy from its slumber, the FM has slashed the corporate tax rates to 25.75% from earlier 30%. This big-bang move will have a rippling impact on all sectors including real estate as it will encourage foreign institutional investors to invest in the country.
In terms of taxation, India will now be at par with many of its Asian peers and hence a major draw for foreign investors who shied away from entering India due to high taxes.
The Indian stock exchange was quick to welcome the move and went on a surge within just an hour. The Sensex saw gain of more than 1,800 points while Nifty jumped over 500 points. This is the highest intra-day gain in a decade, giving investors a gain of INR 5,00,000 crore. This itself reflects that sentiments have gone highly positive.
The chain of announcements made by the Finance Minister in recent past weeks in addressing the growing concerns of various sectors of the economy will go a long way in not just bolstering all-round sentiments but also see its positive ripple impact across all sectors including the real estate. As and when the overall financial health of the economy improves with these slew of measures, there will be heightened activity within real estate – by both actual home buyers and investors alike.