The Budget 2021 day arrived on 1st February. Our Finance Minister Nirmala Sitharaman had hinted for budget 2021 to be paperless. If you are wondering why budget 2021 is important, the answer to that is COVID-19 and its after effect. Due to the lockdown, the economy fell drastically.
Hence, everyone is hoping for a good budget. By everyone, we mean the following people;
budget 2021 for salaried employees
budget 2021 for businesses (SME)
budget 2021 for self-employed
budget 2021 for agriculture
budget 2021 for healthcare
budget 2021 for education
budget 2021 for students
budget 2021 for senior citizens
If you belong to any of the following sectors, then this year’s budget is something you must not miss. Here are our Budget 2021 highlights:
1. No changes in the Income Tax slabs, Individual, and Corporate tax rates.
2. Agriculture Infrastructure & Development Cess (AIDC) will be imposed on petrol & diesel throughout the nation at Rs 2.5 and Rs 4 per liter respectively.
3. A new centrally sponsored scheme on healthcare has been announced – PM Aatmanirbhar Swasth Bharat Yojana where 64,180 crores will be spent in 6 years.
4. For the Health care sector, Rs. 2,23,846 crore has been allotted for 2021-22.
5. There has been an increase in the FDI limits for the Insurance sector from 49% to 74%.
6. Also, 2 well-known PSU banks and 1 state-owned general insurance company will be lined up for disinvestment. An IPO for LIC will be set.
7. The overall capital expenditure that is decided for FY 2021-22 stands at Rs.5.54 lakh crore.
8. Senior citizens above 75 years of age will be exempted from filing income tax returns if their only source of income annually is the pension and interest income.
9. Tax holiday for startups that was initially up to 31st March 2021 has now been extended for another year i.e. up to 31st March 2022.
10. IT Forms will have these details pre-filled before it reaches you – Salary, tax payments, TDS, capital gains from listed securities, dividend income, interest from banks, post office, etc.
11. If the employee’s PF contribution was deducted but hasn’t been deposited by the employer, then that contribution won’t be allowed as a deduction for the employer.
12. Interest on employee’s share of contribution to EPF on or after April 1, 2021, will be taxable during withdrawal. This condition exists only if the amount exceeds Rs 2.5 lakh in 1 financial year.
13. Section 80EEA deduction has been given an extension of 1 year. This means any first-time home loan buyer can claim extra 1.5 lakhs on interest for a home loan paid (over and above the regularly allowed limit of 2 lakhs).
14. A “Bad Bank” i.e. An asset restructuring company will be created by the Government. This Bank will take over the bad loans of the Banks and get these cases sorted.
15. A Dispute resolution committee will be set up to handle disputes of taxpayers with income up to 50 lakh and dispute income is up to 10 lakh.
These are the Budget 2021 highlights. The Indian stock market witnessed a 3500+ point rise within 2 trading sessions. That goes to show how positive the market is with this year’s budget. But there’s a sad response from the common man as there’s nothing much that benefits them in this budget.
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