NEWS
Shares of realtors rise after Centre amends proposal on indexation rules, industry welcomes the move
Shares of the real estate pack are broadly higher, with BSE Realty holding on to gains of two percent after Centre amended the Finance Bill late last evening to allow an option of indexation relief for properties purchased before July 23.
Till August 7, the Realty Index has taken a knock of up to 9 percent since the Union Budget when the indexation benefit was removed for real estate, with Lodha Developers being the worst hit. After the revision of provisions, shares of Lodha Developers and Oberoi Realty have gained the most, rising by as much as three percent in early trade on August 7, followed by DLF and Godrej Properties.
DLF had chosen to play down the impact of removal of indexation on property sales. “The budget was obviously a very interesting budget. There has been lot of noise around indexation (removal) but once the noise is filtered out I don’t think it has too much of a bearing on the way the sales behaviour will be,” Ashok Tyagi, MD and CEO, DLF Limited, told analysts on July 26.
Experts have welcomed the move, calling it a positive development for the sector. “Good idea. Will help quell that drama. But it means any new apartment or house sold from July 23 onwards gets no indexation,” said Deepak Shenoy, Founder and CEO of Capital Mind.
As per the amendment, for land or property purchased before July 23 – the date on which Union Budget 2024 was presented – owners can choose between the new or the old regime to pay the Long Term Capital Gains tax applicable on them depending on the lower tax incident. The development takes away a major concern that was raised by property owners regarding increased capital gains tax burden on real estate. However, any property or real estate purchased after July 24 will be taxed only as per the new tax regime, in line with other asset classes.
A re-think on the issue began after stakeholders of real estate sector made a representation suggesting that the new tax structure could increase tax burden for home owners and negatively impact the industry.
Before Budget 2024, long-term capital gains (LTCG) from property sales were taxed at 20 percent with the indexation benefits. In the Budget, Finance Minister Sitharaman had announced the new tax regime, in which tax rate for long-term capital gains on property sales was pegged at 12.5 percent without the indexation benefit.
Indexation adjusts the purchase price of an asset for inflation and, hence, reduces the taxable capital gains.
Indexation is carried out based on Cost Inflation Index as notified by the government.
Amazon partners with 45 govt emporiums, NGOs, trade bodies to empower local artisans
E-commerce major Amazon India on Wednesday said that it has partnered with over 45 government emporiums, NGOs, and trade bodies in India to bridge the gap between artisans and customers, providing economic opportunities for marginalized weaving communities.
“Customers can shop for over 1.5 lakh products featured from 25 states depicting regional various crafts of India. Amazon will also launch a showcase of selection from over 35 State emporiums including Biswa Bangla, Panthoibi, Garvi Gurjari, House of Himalayas and more,” said a company statement.
More than 2,500 master weavers, co-operatives, artisans and government organisations under various ministries like Textiles, Cottage Industries, and Tribal Welfare, among others have been on-boarded on Amazon.in to sell online, according to the statement.
Further, Amazon said its annual Amazon Karigar programme enables the revival of indigenous arts and crafts while providing local sellers with a platform to list and sell their merchandise online to a larger consumer base.
RBI asks top banks to refrain from large trading bets against rupee
The Reserve Bank of India has asked some large banks to not add to their existing positions against the rupee in a bid to support the currency which has fallen to all-time lows for three straight days, four bankers told Reuters.
Officials from the RBI’s financial markets regulation and operations department rang big banks on Tuesday, when the currency was at risk of breaching the 84/$ level in the spot market, the bankers, who declined to be identified since they are not authorised to speak to the media, said.
The RBI did not immediately respond to a mail requesting comment. Reuters could not ascertain the full list of banks the RBI called.
The Indian rupee turned into the worst-performing Asian currency over the last month, pressured by the unwinding of trades that used the Chinese yuan to fund long bets on the local currency.
To slow the depreciation, the RBI has intervened across the spot, futures and non -deliverable forwards segments.
India became the fifth largest economy under PM Modi's leadership: Vietnamese PM
India and Vietnam on Thursday(01-Aug-24) firmed up a new action plan to expand their strategic ties. Prime Minister Narendra Modi asserted that both sides will work towards a free and rules-based Indo-Pacific and that New Delhi supports development and not ”expansionism”.
Vietnam Prime Minister Pham Minh Chinh said, “…Under PM Modi’s leadership, India has become the fifth largest economy in the world, one of the top powers with a striking global role…”
Chinh visited Rajghat to pay floral tribute to Mahatma Gandhi. The Vietnamese Prime Minister paid his tribute by laying floral wreaths at the memorial site where Mahatma Gandhi was laid to rest, while “Raghupati Raghav Raja Ram”, a prayer dear to the Mahatma, was being played.