‘Streamline infrastructure approval process’

Though the government has undertaken positive steps in the past year including the relaxation in FDI norms, finalisation of the Real Estate Regulatory Bill, amendments to the REIT regulations, we believe that certain specific policy changes and further fine-tuning of fiscal reforms are required to create a multiplier effect on the economy at large. 

To make REIT a success and to ensure a broader participation a few more critical steps are required. While Indian pension funds should be allowed to invest in such securities, insurance companies should also be encouraged to follow suit. There should be parity between resident and non-resident investors in terms of tax treatment. 

The five per cent tax for non-resident investors on income in the form of interest should also be applicable to resident investors. Incentives in the form of lower stamp duty on properties under REIT’s shall also go a long way in making these attractive for investors. 

Policy changes should be made to streamline the approval process not just at the start of the business but also at various levels of project execution. Fast track dispute resolution  will pave way to spur the overall GDP.

Reinstating the standard deduction for salaried individuals will reduce the disparity between the salaried and business class. Currently only the latter is allowed to claim expenses as a deduction against their income. The deductible allowance limits should be enhanced.