Budget 2017: Urban consumers want up to Rs 5 lakh tax rate cut

Till date over 66 per cent respondents of "The 2017 Budget Expectation Survey", aged between 32 - 65 years, popularly shared that the Budget can contribute in creating a conducive environment for property purchase.
The Pradhan Mantri Awas Yojna (PMAY) aimed at providing Housing for All by the year 2022 has been widely accepted by developers and consumers. The current offering under its CLSS scheme is that subsidy is given on Rs 6 lakh loan, without any distinction of city category, and accordingly the cost of construction/property prices or cost of living.It is suggested that the subsidy may be linked to city categories to appropriately benefit the target segment.
Who is the target segment? Is it only consumers belonging to the lower income group (LIG)? Anuj Puri, Chairman & Country Head, JLL India clearly stated that clarity on beneficiaries under the scheme is crucial. He asked the government whether young urban professionals hoping to buy their own apartments but not belonging to either the EWS (Economically Weaker Section) or the LIG segments be allowed similar subventions?
In pursuit of the answer, Magicbricks asked the question to its readers. A whopping 91 per cent responded that the Budget 2017 should bring subventions to encourage urban population to invest.
Budget Expectations from consumers
A favourable environment will help in the enhancement of consumer confidence. Key factors which will push the urban buyer towards making a purchase are deduction in the tax rates which will help them financially. The other factor would be cash liquidity in the market. Post demonetisation, consumers feel cash strapped. This was one of the reasons why city markets of Delhi-NCR, Mumbai, etc. saw a pinch in transactions. This situation, of course, is temporary and would eventually improve which would reflect in the market.
The percentage deduction in tax rates is slightly varied. Though majority want Rs 4 - 5 lakh cut in tax, the chances of this wide a cut in reality might not be possible. Up to Rs 4 lakh cut in tax rates is more realistic.
Urban consumers can also benefit from the re-development projects within city premises. These projects, which fall inside the affordable price range bracket dictated by the government, should also enjoy PMAY benefits. Over 82 per cent consumers have voted for this option.
(Inputs from Namrata Ekka)