The Union Budget of India, also referred to as annual financial statement in Article 112 of India’s constitution, is the republic of India’s annual budget. It is an assertion of the estimated receipts and expenditure of the government for that particular year. Finance Minister Smt. Nirmala Sitharaman presented it on 1st February 2021 to materialize before the new financial year in April.
Budget lays focus on six pillars for a reviving economy
Health and well-being
Physical & financial capital and infrastructure
Inclusive development of aspirational India
Reinvigorating human capital
Innovation and research & development
Minimum government and maximum governance
Key Highlights of the Union Budget 2021-22
Fiscal deficit for FY 2021-22 targeted at 6.8% of GDP.
Increase in capital expenditure by 34.5% (Rs.1,42,151 Crores ) over budget estimate 2020-21.
Foreign direct investment (FDI) in Indian insurance companies increased to 74% from 49%.
The new centrally sponsored scheme, PM Aatmanirbhar Swasth Bharat Yojna, with an outlay of about 64,180 crores over six years, has been proposed.
Budget outlay for health and well-being is estimated to be Rs.2,23,846 crore for FY 2021-22, rising by 137% yearly.
The government will launch Mission Poshan 2.0 and Jal Jeevan Mission Urban.
Non-Resident Indians (NRIs) are allowed to Incorporate One Person Company (OPC) in India.
For being an OPC resident, India’s number of days is reduced to 120 days from 182 days.
The small company revised definition under Companies Act, 2013. Companies with paid-up capital up to Rs.2 crore and turnover up to Rs.20 crore will fall under small companies. This threshold previously held the limit of paid-up capital to Rs.50 lakhs and turnover up to Rs.2 crore.
LIC will bring initial public offer (IPO) of LIC in 2021-22.
Two public sector banks and one general insurance firm will be disinvested this year.
Gross borrowing from the market is estimated at Rs.12 Lakh crores.
18,000 crores are set aside for public transport in urban areas.
Exemption from filing ITR- senior citizens of age 75 years or above are now exempted from filing Income Tax Return (ITR) if pension income and interest income are their only Annual Income. New Section (Sec 194P) has been introduced under the Income Tax Act, 1961.
Except for serious tax evasion, assessment proceedings can be reopened only up to 3 years earlier than six years.
Limit for tax audit under sec 44AB has been increased from Rs.5 crore to Rs.10 crore (only where 95% of payments are digitized).
The tax holiday for startups has been extended by one more year up to 31st March 2022.
Income tax slab rates remain unchanged.
Imported objects that will become costlier
Compressors for refrigerators and air conditioners
LED lamps, parts and spares such as printed circuit board
Raw silk and cotton
Solar inverters and lanterns
Automobile parts such as safety toughened glasses, windscreen wipers, signalling equipment
Mobile phone charger components
Ink cartages and ink spray nozzle
Finished leather products
Nylon Fibre and Yarn
Imported objects that will become cheaper
Gold and gold dore
Silver and silver dore
Other precious metals like platinum and palladium
Medical devices imported by the international organization
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