The Union budget 2021-2022 was represented by the Honourable Finance Minister Nirmala Sitharaman on 1st February 2021 in the Parliament . The budget speech was given by the FM from 11 a.m. to 1 p.m. 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 .
Tax proposals – Budget Highlights 2021
- Reduction in time for IT Proceedings: Except in cases of serious tax evasion, assessment proceedings in the rest of the cases shall be reopened only up to three years, against the earlier time limit of six years.
- Tax incentives to start ups:
- The tax holiday for start ups has been extended by one more year up to 31st March 2022.
- Relaxations to NRI:
- There is a proposal to notify rules for removing hardship for double taxation.
- Budget 2021-22 reflects firm commitment of the Government to boost economic growth by investing in infrastructure development. This is substantiated by increase in capital expenditure by 34.5% (`1,42,151 crore) over BE 2020-21.
- In RE 2020-21, the total expenditure has been estimated at 34,50,305 crore and is more than Provisional Actual (2019-2020) by 7,63,975 crore.
- The total resources being transferred to the States including the devolution of State’s share, Grants/ Loans and releases under Centrally Sponsored Schemes etc in BE 2021-22 is `13,88,502 crore, which shows an
increase of `74,565 crore over RE (2020-21).
Indirect Tax Proposals - Budget highlights 2021
Few of the items on which Customs Duty Rates are revised are as follows:
Reduced duty on copper scrap from 5% to 2.5%
Basic and Special additional excise duty on petrol and high-speed diesel oil (both branded and unbranded) is reduced
Increased duty on solar inverters from 5% to 20%
Raised duty on solar lanterns from 5% to 15%
The basic customs duty on gold and silver reduced.
0 Comments