Budget Highlights 2021-2022

Following a series of small budgets in the form of relief packages, the first Union budget of the third decade of the 21st century was proposed by FM Sitharaman to provide relief to common people who are facing a lot of financial stress due to the Covid-19 pandemic. In multiple fields, big announcements are:

• In Budget Highlights 2021-2022, some 15,700 crores will be allocated to the government’s MSME sector.
• The government also aims to lower the margin money demand in the Start-up India scheme from 25% to 15%.
• NRIs will now have one independent company in India.

The major announcements related to taxation in the Budget Highlights 2021-2022:-

• Senior citizens above the age of 75 who have a pension and interest earnings are excluded from paying federal tax returns.
• Senior citizens above the age of 75 who collect a pension or interest income are excluded from filing taxes.
• A dispute resolution committee for small taxpayers will be formed. Individuals with taxable income up to 50 lakh and disputer income up to 10 lakh would profit from this.
• The central government suggested creating appeal courts for faceless income tax and a nationwide income tax appeal tribunal centre.
• The government has declared that Non-Resident Indians (NRIs) would be excluded from double taxes on their overseas retirement accounts if they demand an exemption on India’s tax deducted. The taxability of these funds varies between India and the respective region.
• The right to claim an exemption from tax holidays and capital gains for start-up investments has been extended to 31 March 2022.
• The government plans to reduce GST’s twisted duty systems and review 400 old exemptions, starting in October 2021.
• The government proposes that dividend distributions from the Real Estate Investment Trust (REIT) or Infrastructure Investment Trust (InvIT) be excluded from TDS.
• For firms who perform 95 per cent of their transactions online, the government has raised the tax audit cap to 5 crores.
• Only cases of serious income concealment tax breach greater than Rs.50 Lakh a year will be allowed to be reopened for up to ten years. The lawsuits will only be revived once every three years.

Savings

If companies do not deposit a PF donation on schedule, they will forfeit their contribution deduction. The interest gained on the annual contribution of PF over the value of 2.50 Lakh per annum is now taxable, bearing on the charitable provident fund’s donations.

Housing and Healthcare

• Migrant staff will now take advantage of a 1.50 lakh interest tax holiday under the subsidised rental housing system.
• Tax holidays on affordable housing projects have been extended until 31 March 2022 for 1 year.
• Under Prime Minister Atmanirbhar Swasthya Bharat Yojana, the Union Budget plans a 64,180 crore scheme to improve healthcare facilities.
• Tax cuts for affordable housing projects were originally extended until March 31, 2022.

• The Depositories Act and the other two statutes are to be translated into a single Uniform Trading Code for Securities.
• Both financial goods now have an investor charter.
• The government has expanded the insurance sector’s Foreign Direct Investment (FDI) cap from 49 per cent to 74 per cent.
• To take over stressed loans and value realisation, an asset rehabilitation company will be created.
• The government aims to streamline the recent rise in deposit insurance to make it easier for depositors to access their assets and offer support to depositors affiliated with troubled banks.
• The initial public offering (IPO) of LIC will be completed between 2021 and 2022.
• Government to set up a National Infrastructure Finance Institution to lend 5 Lakh crores in 3 years with 20000 crores capitalised. Through amending the laws, debt funding would be allowed through the infrastructure investment trust (InvIT) and real estate investment trust (REIT) paths.

• The government has imposed an agricultural cess of Rs.2.5/litre on petrol and  Rs.4/litre diesel.
• The price of MSP has been raised by 1.5 times, according to the FM.
• In the E-NAM market location, more than 1,000 mandis are to be integrated.

• A 5.54 trillion capital spending to raise heavy and medium commercial vehicle production.
• The government agrees to enforce a cooperative scrappage scheme and expand the number of buses in the public transit system. 15+ years of freight cars and more than 20 years of personal vehicles will be removed. The government has set aside 18,000 crores for the procurement of 20000 buses.
• In the Union Budget 2021, 1.10 Lakh crore was allotted in FY22 to Indian Railways. The government has disclosed a potential rail programme for Indian Railways by 2030.

Education

• In tribal areas, the government would create 100 Sainik Schools and 750 Eklavya Schools.
• A new central university will be built in Ladakh soon.
• More than 15,000 schools will be improved according to NEP 2020.
• For central higher education institutions in different cities such as Hyderabad, an ‘umbrella’ system would be established.

Conclusion: The union budget 2021-2022 was proposed to cover the challenges that appeared due to the Covid-19 pandemic and little improvement in the Income Tax slab for individual taxpayers. The 2021-2022 budget would improve health, insurance, banking, and other industries. The budget outlines the urgent priorities of people’s needs and sums up the vision of improving the railways and other industries.

✅What is the date of Budget Highlights 2021-2022?

The budget 2021-2022 was presented by the Indian finance minister Nirmala Sitharaman on the 1st February 2021.

✅Is there any change announced in the income tax slab in the budget 2021?

No, there has been no changes announced in the income tax slabs. Visit the official site of Dialabank for further details.

✅Who presents India’s budget?

India’s finance minister presents the country’s budget in the parliament’s lower house (Loksabha).