The upcoming budget is likely to provide some incentives for environmentally friendly practices to achieve Net Zero’s goals in India.
With India announcing an ambitious net zero emissions target by 2070 at COP26, the upcoming budget is likely to provide some incentives for environmentally friendly practices to achieve India’s net zero targets. Industry experts anticipate that attractive incentives will be offered across industries, particularly construction and real estate, to achieve Net Zero’s goals in India.
Commenting on the outlook towards the “green budget,” Vivek Galan, Partner, Tax Connect Consulting, a multidisciplinary tax consultancy, said, “Real estate is one area where the Finance Minister may announce some measures to encourage construction of green buildings.”
“Under GST, the Input Tax Credit is not available on civil works for building construction. It is expected that to stimulate and promote green buildings, ITC is provided for green building construction,” Galan said.
The real estate industry and consultants have similar forecasts from the budget, which is due on February 1.
Rishi Raj, Chief Operating Officer of Max Estates Ltd, said, “As a progressive player in real estate, we want to make a positive contribution to the environment. We have consciously made choices that reduce our carbon footprint over the life of our assets. Our latest sustainability report, released over the years, explains The first few of the establishment of the organization, our core strategy for sustainability, environmental, social and corporate governance, which is divided into several topics such as biodiversity, health and well-being, compliance, circular economy etc. and related related goals.Our ultimate goal is to create Net Zero Buildings LEED certification and IGBC assessment of all our assets She is a testament to that.”
“Government interventions and policy changes such as tax cuts to meet specific environmental standards and certifications, green taxes on harmful environmental activities, and subsidies on the use of green products and services such as solar panels, electric vehicles and carbon-neutral materials can go a long way in furthering the sustainability agenda, which is steadily becoming need of the hour.
The construction of high-performance buildings, full of sanitary and energy-saving measures, involves different engineering, planning and technology and, therefore, must be stimulated.
“The budget could provide for tax benefits in the form of a time-bound exemption of profits from being taxed, and other tax incentives for developers involved in the development of sustainable commercial and residential buildings. Future buildings will take into account aspects such as Improving natural lighting, providing green roofs and using renewable energy sources, sewage treatment, rainwater harvesting, etc. to improve the way we live and work., who also anticipates similar incentives.
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