Quite like every year, the budget season is upon us. However, this year for Budget 2021, the stakes are higher considering the tumultuous year we have left behind. This fiscal year, by all means, seems to be reparatory. The common man has burnt up savings to cruise through the economic effects of the lockdowns implemented.
People across the financial spectrum now watch with bated breath what the Budget 2021 has in store for them – whether there will be some financial respite coming their way or should they buckle up for more financial turmoil?
Key takeaways from Union Budget 2021
It is no surprise that in the wake of a pandemic, governments all around the world will now prioritize healthcare and the same stands true for India as well. Mission Poshan 2.0 has been launched and it aims to improve the nutritional outcomes across 112 districts. There will also be modernizing of pre-existing healthcare units at 32 airports, 15 seaports, and land ports.
Jal Jeevan Mission Urban will aim to provide water supply on a nationwide scale.
Swacch Bharat Mission 2.0 will be launched with renewed vigour and newer strategies to improve the cleanliness of the nation.
In case you have been wondering what tax structures will appear like, here is a glimpse into what your 2021-22 fiscal year looks like:
- There will be no IT filing for people above 75 years who get pension and earn interest from deposits.
- Reopening windows for IT assessment cases have been reduced from six to three years. However, in case of serious tax evasion cases of ₹50 lakh or more, the window can go up to 10 years.
- Affordable housing projects will be getting a tax holiday for one year.
- Duty on copper scrap has been reduced by 2.5%.
- Custom duty on gold and silver will be rationalized.
- Duty on solar inverters raised from 5% to 20% and on solar lanterns from 5% to 13%.
- All nylon products will be charged with a 5% customs duty.
Economy and Finance
If you are more concerned with personal finance, here is what you should know:
- The fiscal deficit stands at 9.5% of the GDP and is estimated to be 6.8% in 2021-22.
- There will be a proposal to allow States to raise borrowings up to 4% of GSDP this year.
- Proposals are in order to increase the FDI limit from 49% to 74%.
- There will also be an asset reconstruction company set up to take over stressed loans.
- Deposit insurance increased from ₹1 lakh to ₹5 lakh for bank depositors.
- Proposals are in order to decriminalize the Limited Liabilities Partnership Act of 2008.
- An IPO of LIC to debut this fiscal year.
There will be a portal launched to maintain information on gig workers and construction workers. Social security would be extended to gig and platform workers and margin capital will be required for loans via the Stand-Up India scheme reduced from 25% to 15% for SCs, STs, and women.
These are the key takeaways from Union Budget 2021-22. This aims to improve worker conditions and financial situations of small and medium scale entrepreneurs in the long run.