Highlights Of Union Budget 2020
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Highlights of Union Budget 2021

The Union Budget 2021-22 was presented by the Hon’ble Finance Minister Nirmala Sitharaman on 1st February 2021 in the Parliament. This year’s Budget lays focus on the seven pillars for reviving the economy – Health and Wellbeing, Physical and Financial Capital and Infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, and Minimum Government Maximum Governance. Several regulations around the securities market are proposed to be merged as a single code. Several direct taxes and indirect taxes amendments were also proposed. Highlights are as below:

Health and Cleanliness

  • Government to take a position Rs 69,000 crore within the health sector and over twelve thousand crores within the Swachh Bharat endeavour
  • Hospitals with Private investment under PPP to be inbuilt Tier 2 and Tier 3 cities
  • Expansion of Jan Aushadhi scheme

Taxes

  • Simplified tax structure with income slabs and taxes as following

No tax for income up to Rs 5 lakh

10% for Rs 5-7.5 Lakh

15% for Rs 7.5-10 Lakh

20% for Rs 10-12.5 Lakh

25% for Rs 12.5-15 Lakh

30% for income Rs 15 lakh and above

  • Dividend distribution tax for companies are removed
  • Reduction in corporate tax for companies, new charges are 22%
  • To boost infrastructure, the govt has offered a cent percent tax concession to wealth funds with plans of investing in infrastructure
  • ‘Vivad se Vishwas’ scheme which is aimed to resolve appeals raised by direct taxpayers. It gives taxpayer an entire waiver on any extra penalty or interest charges and allows him/her to only pay the quantity of the disputed tax.

Affordable Housing

  • To make life easier, a further tax break of Rs 1,50,000 to be extended on interest paid on affordable housing loans by a year to Mar 2021
  • Tax holiday offered to those developing affordable housing

Transportation

  • Rs 1,70,000 Cr investment in transport infrastructure to be suggested
  • 9,000 km of an economic corridor to be found out
  • An expressway for routes from Chennai to Bangalore are going to be started which from Delhi to Mumbai are going to be completed
  • Rs 18,600 Crore suggested for a suburban rail project in Bangalore
  • High-speed train to be started between Mumbai and Ahmedabad
  • 100 new airports by 2025 and privatization of 1 major airport
  • Complete electrification of 27,000 km of lines

Investments

  • Bank deposits now safer with insurance cover of Rs. 5 Lakh vs the sooner Rs 1 lakh
  • Decriminalisation of civil offences within Companies Act
  • FDI has increased within the last 5 years from $190 bn to $284 bn