Did you catch the budget this year? No? Worry not, we’ve got you covered.
The first budget 2021 after the global pandemic was a crucial one. Everyone had high hopes from the budget, and the finance minister surely didn’t disappoint.
Take a look at the key takeaways from this year’s budget.
Budget 2021 – Snapshot
This year, growth is high on the agenda, not only for the next financial year but for the foreseeable future.
The focus in this year’s budget has been on putting the Indian economy on a higher growth trajectory. The government plans to accomplish this by substantially increasing the allocation towards healthcare, infrastructure development & other capital expenditure programs.
New Measures are proposed to attract foreign capital into infrastructure space which will help push the economy forward.
Unfortunately, there is no change in the individual and corporate income tax rates or capital gains tax.
No additional taxes or cess has been levied which has come as a relief.
Budget 2021 – General Overview
This is the first digital budget in the history of India!
Got an antique vehicle? – A new vehicle scrapping policy has been introduced.
- Your Vehicle will have to pass a Vehicle Fitness Test after 20 years in the case of Personal vehicle and 15 years in the case of commercial vehicles
The pandemic effect? – A total of 64,180 crores allocated for New Health Schemes
Fighting on the frontline! – A total of 35,000 crores has allocated for Covid Vaccine
Manufacturing Superpower! – A proposal of 7 Mega Textile Investment parks is put forward to be launched in 3 years
Improving Infrastructure! – A total of 5.54 lakh crore provided for Capital Expenditure
Your City To Goa In Just ….. Hours? – A total of 1.18 lakh crore for the Ministry of Roads
Reach The Farthest Corners In India – A total of 1.10 lakh crore allocated to Railways
You’re Insured! – A proposal to amend Insurance Act and increase foreign direct investment from 49% to 74%
One Man Show! – A Proposal to review the definition of ‘Small Companies’ under Companies Act 2013.
Privatization – A proposal to disinvest in public companies managed by the government. The Announced Disinvestment of Companies will be completed in FY 2021-22
Budget 2021 – What Got Cheaper? & What Got Costlier?
What Got Cheaper?
- Nylon Chips
- Nylon Fibre And Yarn
- Iron And Steel Including Scrap
- Products Of Non-alloy Steel
- Raw Materials Used In Manufacture Of Crgo Steel
- Copper Scrap
- Components And Parts For Manufacturing Of Aircrafts By PSUs
- Platinum, Pallidum
- Waste And Scrap Of Precious Metals
What Got Costlier?
- Cotton and cotton waste
- Raw Silk and silk yarn and spun from silk waste
- Denatured ethyl alcohol (ethanol) for manufacturing of excisable goods
- Fish and Prawn Feed, Flours, meals and pellets of fish, crustaceans, molluscs, or other aquatic invertebrates
- Maize Bran
- De-oiled rice bran cake
- Carbon Black
- Plastics of specific types and polycarbonates
- Chrome tanned leather, crust leather, finished leather of all kinds.
- Cut and Polished Cubic Zirconia
- Synthetic Cut and Polished Stones
- Parts and components for manufacturing of Tunnel Boring Machines
- Metal products like Screws, Nuts, etc.
- Plastic, for manufacturing of charger or adapter
- The compressor of Refrigerator/Air Conditioner
- Specified insulated wires and cables
- Inputs and parts of LED lights or fixtures, including LED
- Solar Inverters
- Solar lanterns or solar lamps
Budget 2021 – Impact On Direct And Indirect Tax
Aaram ki Zindagi – Reduced Compliance burden for senior citizens aged 75 years and above.
- The government has proposed that citizens over the age of 75 need not file income tax returns (ITR)
Reduced Hassle Of Compliance – Reduction in time for IT Proceedings
- Reopening of Assessments period reduced from 6 years to 3 years
Problem Solvers! – Proposal to constitute Dispute Resolution Committee.
No corruption! – Proposal to set up National Faceless Income Tax Appellate Tribunal Centre
Just Chill– Relaxations to NRI
To The Moon! – Changes to tax audit limit
- Proposal of tax audit increased from 5 Cr. to 10 cr.
Proposal to provide relief on advance tax liability on dividend income
India, Let’s Fly! – Proposal to include tax holidays for Aircraft leasing companies
In Charity, We Trust – The compliance limit for small charitable trusts increased from 1 crore to 5 crores.
Unicorns! – Tax holiday exemption for one more year as an Incentive to startup
Reduction in duties on various textile, chemicals, and other products
Budget 2021 – Biggest Gainers And Losers
Top Gainers In Budget 2021
- Transport Infrastructure
- Electronics Manufacturing
- Rural Sector
- Online Educators
- It Firms
- Pipeline & City Gas Suppliers
Top Losers In Budget 2021
- State-run Banks
- Real Estate & Construction
- Fertilizer Companies
- Logistic Players
Check out BookAWorkshop for more information.