Budget 2021 Highlights
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- FM announces the Jal Jeevan Mission with an outlay of 2.87 lakh crores aiming to provide full-fledged water supply to all urban local bodies with household tap connections.
- The FM proposed Rs1.41 lakh crores over a period of 5 Years for the Urban Swacch Bharath 2.0.
- An amount of Rs.1.47 lakh crores, over a 5-year-period, from 2021 has been assigned for initiatives such as wastewater treatment, reduction in plastic waster, reduction in pollution and the like.
- The Scrapping Policy has been announced in the Budget2021. The voluntary vehicle scrapping policy aims to remove inefficient vehicles so as to reduce vehicular pollution and oil import bills.
- FM proposes an amount of Rs.35000 crore to manufacture and make accessible the COVID19 vaccine.
- FM proposes an amount of Rs. 1.97 lakh crores, over 5 years, starting this FY to nurture global manufacturing champions and increase jobs for the youth
FM has proposed a mega-investment textile park to be launched along with 7more textile parks to be established over the next 3 years.
- The FM proposes to set up a Development Financial Institution with an amount of Rs.5 lakh crores
- FM states that the Budget2021 will focus on the NHAI operational toll roads, airports in tier-2 and 3 cities, and sports stadiums
- The capital expenditure for the year 2021-22 will be 5.54 lakh crore with a 34.5% Y-o-Y growth rate.
- Our FM announced that more than Rs.2 lakh crores will be allocated for capital expenditure in the states and other autonomous bodies.
- FM announced that till date, a measure of 3,800 km highway-stretch has already been constructed and an additional km will be constructed under Bharat Mala project.
- The FM proposed the following National Highway budget for the below states:
- Tamil Nadu: 3500km @ Rs. 1.03 lakh crores
Kerala: 1100km @ Rs.65,000 crores
West Bengal: 675km @ Rs.25,000 crores
- Also, National highway project of around 19,000 crores is in progress in Assam. Overall, the FM proposes a total of Rs.1,18,101 lakh crore for Ministry of Road Transport and Highways.
- An Infra-National Rail plan to prepare a future rail system in India by 2030 has been proposed to bring down logistics cost.
- The next few phases of metro projects will be taken up in Metro cities. Also in line are the ‘Metro Lite’ & ‘Metro New’ concepts for tier 1& 2 cities.
- The FM proposed to extend Ujjwala Scheme up to 1 crore beneficiaries from the existing 8 crore beneficiaries.
- The FM proposes to focus on the various allied laws of the securities market to be merged to the Securities Market Code.
- FM announced that the #SEBI will be notified to regulate the setting up and arrangement of the commodity market system.
- FM grants Rs.1,000 crores to the Solar Energy Corporation of India for the growth of the Solar Energy Sector.
- FM proposed to amend the Insurance Act to introduce additional FDI to insurance companies from the existing 49% to 74%.
- FM announces that a new Asset Reconstruction Company is to be set up to provide resolution to stressed assets in PSUs.
- The FM proposed to amend the DICGC Act, 1961 to streamline its provision where the depositors of the bank can get easy access to deposits through insurance in the case of a stressed bank.
- The FM announced that de-criminalization under the Companies Act, 2013 is complete and now the decriminalization of LLP Act, 2008 will be in force.
- Our FM modified the definition of small companies: companies with a paid-up capital not exceeding 2cr & a turnover not exceeding 20cr are to be considered small companies. Over 2 lakh+ companies benefit from this provision.
- For Startups and Innovators, the FM announced that the OPC can be incorporated without a limit for turnover or paid-up capital. This also allows NRIs to incorporate OPC in India.
- Our FM proposes a special framework for MSME.
- The FM announced that MCA 21 V3.0 to be introduced with additional modules for e-scrutiny and e-adjudication.
- FM stated that the IPO of the LIC will be carried out in FY 2021-22. Also, for the disinvestment strategy, two PSUs and 1 insurance company will be considered.
- The FM informed that the 15th Finance Commission’s recommendation is to rationalize and reduce centrally sponsored schemes.
- In the Agriculture sector, the MSP regime has undergone a change to provide 1.5 times the product cost across all commodities.
- The total amount paid to wheat farmers was doubled in 2019-20 when compared to 203-14.
- The FM announced that agricultural credit will be increased to 16.5 lac crore.
- The FM proposed to enhance the scope of the ‘Operation Green Scheme’ to include 22 perishable crops, and 1.68 crore farmers have registered. Also, 1,000 mundis to be integrated under the said scheme.
- The FM stated that the government will take up the development of fishing harbors and fish landing centers along the banks of rivers and waterways.
- The FM announced that the ‘1 nation-1 ration card’ plan has been implemented by 32 States and UTs. Migrant workers benefit from this scheme as they can claim ration from anywhere in the country.
- The total fiscal deficit is pegged at 9.5 % of GDP and it is funded through govt borrowing. An additional 80,000 crore is needed to ensure our economy is given the needed push.
- The borrowings from the market for next year will be at 12 lakh crores.
- FM announced that the senior citizens who get only pension and interest on income are not required to file ITR.
- Reopening of assessment:
- In normal cases: the time limit has been reduced to 3 years from 6 years.
In serious tax evasion cases: can be reopened till 10 years, only when concealment of income is more than 50 lakh. - FM announced that the ‘Faceless dispute resolution committee and mechanism’ is set up to reduce litigations for small taxpayers. Any taxpayer with taxable income up to 50 lakh and disputed income up to 10 lakh can approach the committee.
- FM proposed a faceless Income Tax Appellate Tribunal (ITAT) for providing online resolution.
- The ‘tax audit limit’ under Section 44AB has been increased from Rs.10 crores to Rs.5 crores where 95% of business transactions are done in digital mode.
- The FM announced that the ‘advance tax liability’ on dividend income shall rise only after the declaration or payment of dividend.
- The FM announced that the deduction under section 80EEA is to be extended to loans taken up to 31st March 2022.
- FM announced that the affordable housing projects can avail tax holiday until 31 March 2022.
- FM announces tax incentives for the IFSC and tax holiday for aircraft leasing and rental companies.
- FM announces the pre-filled ITR in Budget2021: Salary, Tax Payments, TDS are already pre-filled. Capital Gains, dividend incomes, and interest income will now be pre-filled.
- FM states that in case the PF amount was deducted but not deposited by the employer, it will not be allowed as a deduction for the employer.
- FM announces that the deduction under section 80IAC will be extended upto 31st March 2021.
- Under Indirect Taxation, the FM proposes to review 400 old exemptions this year through extensive consultations. After which a revised customs duty structure will be introduced.
- The FM has rationalized customs duty on copper, textile, gold and silver.
- The FM raised customs duty on solar inverters from 5% to 20% and solar lanterns from 5% to 15%.
- The FM proposed to withdraw exemption on import of leather as they are domestically produced.
- The FM proposes ‘Turant Customs’ initiative for faceless, paperless, and contactless customs measures.
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No change in IT tax slabs
Petrol and diesel will get costlier due to this cess
FM announced that the senior citizens who get only pension and interest on income are not required to file ITR. >>>> The age is 75 years afaik not 60 and above.
In normal cases: the time limit has been reduced to 3 years from 6 years. >>>> Wasn’t this 8 years earlier?
The FM raised customs duty on solar inverters from 5% to 20% and solar lanterns from 5% to 15%. >>>> This will nullify the decrease in carbon tax initiative like scrappage policy etc.
The FM proposed to amend the DICGC Act, 1961 to streamline its provision where the depositors of the bank can get easy access to deposits through insurance in the case of a stressed bank >>>> FRDI? Access to customer’s deposits?
Can anyone explain the different sections of tax saving modes like 80C, 80EEA etc?
You missed the most important point. 
FM announces the pre-filled ITR in Budget2021: Salary, Tax Payments, TDS are already pre-filled. Capital Gains, dividend incomes, and interest income will now be pre-filled.
No more avoiding tax on all those funds in savings acc in idfc.
@bikidas2060 @MrKool_JJ @caks2006407 @ManojSingla @Tejaa @AJ89 @aam_aadmi @avgn @VellaBoy @rockingneo @GoogleCA @A2Zdeals
RIP Indian economy
next level ka speculation chal raha hai.
Don’t see much attraction… Still stock market bumping 
Aayenge. Karan arjun aayenge. 
I guess this one is missed in the discussion here
Interest income on annual EPF contributions above Rs 2.5 lakh to be taxed
https://www.moneycontrol.com/news/business/pers...
Well this one was the most detrimental for someone like me. I am putting 6-7 lakhs in Epf vpf PPF together for few years. It was just too good to resist. 8.5 percent tax free interest. No lock-in as such since Epf can be withdrawn for any emergency or house purchase etc. With huge salaries in IT , vpf was being used heavily over the last 3-4 years. Prior to that, salaries were limited to sub 15 lakhs for most of the people and this scheme was not impacting govt too much
Only full fledged FDI can save the economy but Adani Ambani do not want that to happen so that they can have market for themselves.
In simple terms, we need huge huge huge investments and reforms. Liberalise the economy and open it completely.
They already ripped our present and i thought epf will save me. Added huge sum into it via vpf. Now rip to it too.
Hail to Tai
Better to withdraw at the earliest chance like house construction or so as we can’t trust these guys. Anytime they can make withdrawal also taxable. Though I haven’t used VPF till now, but started to think about withdrawal in near future. If we keep it untouched for retirement, looks like government can dip in anytime in future
Any logic behind chnging the ex. Duty to cess?
KG+
TLDR, any change in income tax scheme? They introduced one new agriculture cess which will be imposed on petrol/diesel and things like gold etc. What does that mean? On the latter the import duty was decreased 5%. So, how will agriculture cess be added to it?
An amount of Rs.1.47 lakh crores, over a 5-year-period, from 2021 has been assigned for initiatives such as wastewater treatment, reduction in plastic waster, reduction in pollution and the like.
Corruption ki khuli chuut hogi is mehakame ko.