UNION BUDGET 2021 (highlights)
HOME SERVICES FEEDBACK CONTACT US BLOG X Deepti Arora & Co. – Chartered Accountants UNION BUDGET 2021 (highlights) 24 February 2021|budget, income tax, India, india union budget Presentation of the first digital budget announcement, Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman suggested that the Union Budget 2021-2022, inspired by the Covid-19 pandemic, is touted as the best budget in 100 years. This budget has set the benchmark for India to become Aatmanirbhar or self-reliant. Rs. 34.5 Lakh, Crore estimate for 2021-22, is announced by the finance minister in the pandemic context. This 2021-22 budget called for the maximum capital growth of 34.4%, providing railways, roads and defense with more funding. 6 Union Budget Pillars for 2021-22: Health and Well-being Infrastructure and physical & financial resources Aspiration India Inclusive Development Human Capital Reinvigorating R&D and innovation Minimal government and maximum governance Important Announcements: Healthcare and Well-Being – The budget for the health and wellness sectors allocated to Rs. 2,83,000 Crores The action plan required nearly 30,000 rural and urban health and wellness facilities to be set up. For the Covid-19 vaccine, the finance minister also funded around Rs. 35,000 Crores with a plan to provide additional funds. Models of Growth & Investment – The finance minister emphasized the government’s commitment to building an expansionary budget for ‘Aatmanirbhar Bharat’ to enhance capital investment, growing spending and promoting better employment opportunities. Major Infrastructural Announcements – Public-Private mode of collaboration in major ports More Government Infrastructure Pipeline projects Public transportation budget of around Rs. 18,000 Crores Development of Metrolite and associated technologies in Tier 2 cities Approximately Rs. 1, 00,000 crores for the construction of 11,000 kilometers of the national highway corridor In The Manufacturing Sector – Establishment of 7 mega parks for textiles Production-Linked incentive program or PLI for a wide range of products in electronics that seeks to make India a worldwide manufacturing and export hub At about Rs. 5.54 Lakh Crores, the government’s capital expenditure for FY22 is very generous, which is 35 percent higher than last year. Investments Announcements – The FDI growth in the insurance company from the current 49% to 74% Public banks recapitalization of approximately Rs. 20,000 Crores was proposed for FY22 The establishment of the Development Finance Organization Balancing the Books and The Budget Deficit – The country’s fiscal deficit is forecast at 9.5% of GDP for FY21, i.e., during April 2020 and March 2021, at the macro level. The finance minister projects a fiscal deficit of 6.8 % for FY22, with a projection to reduce it consistently to below 4.5 percent by 2025-26. Proposed strategy to Handle The FY22 Fiscal Deficit: A total of Rs. 12,00,000 Crores Borrowing Strategic divestment of two banks of the public sector and one general insurance company LIC’s Initial Public Offering (IPO) Sale of BPCL and Air India Selling non-core properties such as surplus land Taxes: There are no significant changes in direct taxation. This budget aimed to improve the tax experience through: Extending the framework of Vivad se Vishwas until 28 Feb 2021 Reduction in the re-opening of tax assessments from 6 to 3 years Reduced litigation involving small taxpayers Increase thresholds for a tax audit. Share this post: Facebook-f X-twitter Contact Categories work from home tax self-employed salary slip roc rent paid rent payslip payroll deductions payroll pay slip mca kyc job change ITR india union target India income tax return income tax hra house rent allowance freelancing freelancer Form 16 finance employee compliance budget 2020 budget allowances Deepti Arora & Co. – Chartered Accountants Address 811, SIDCO ARAVALI APARTMENTS, GH-1,SECTOR 1, IMT MANESAR, GURUGRAM 122051 Contact Us +91 9999017642 +91 7827261120
UNION BUDGET 2020 (highlights)
HOME SERVICES FEEDBACK CONTACT US BLOG X Deepti Arora & Co. – Chartered Accountants UNION BUDGET 2020 (highlights) 6 February 2020 | budget, budget 2020, compliance, finance, Form 16, income tax, India, india union budget India’s big budget for the fiscal year 2020-2021 arrived during a time where the country is witnessing feeble economic growth and a slowdown in macro-economic activities. This scenarios is quite evident from the performance of various key sectors including real estate, infrastructure, manufacturing etc.The budget had to live up to the expectations of all groups of the society ranging from an Individual to a big corporate. The below paragraphs talk some key highlights from this budget: FOR INDIVIDUALS· Instant online allotment of PAN based on Aadhaar. · Extension of tax holiday on affordable housing by 1 year. · Additional deduction of Rs.1.5 lacs for interest paid on affordable housing loans extended until 31 Mar 2021. · Donations made to charitable institutions under 80G to be verified against annual information report filed by these institutions. · New (Optional) Tax Regime For individual taxpayers, new optional income tax regime came into picture. Under the new regime individual assesses with taxable income of less than Rs.15 lakhs slabs can avail of lower tax rates if they forego various exemptions and deductions. New optional tax slabs are rates are FOR CORPORATE Waiver of Dividend Distribution Tax A big boost for the corporate sector came in as the government decided to waive off the Dividend Distribution Tax in the hands of corporate. The dividend will now be taxed in the hands of the investors. FOR COOPERATIVES Tax on cooperative societies comes down to 22% from an earlier rate of 30%. INDIRECT TAXES Rise in customs and excise duties on furniture, footwear and cigarettes. The tax on ESOPs will be deferred by five years encouraging more issue of ESOPs. GST New simplified GST return to be implemented from Apr 1 2020. MSMEs now come under mandatory audit if they reach a turnover threshold of Rs.5 crore as against Rs.1 crore if they carry out less than 5% of their business in cash. VIVAD SE VISHWAS SCHEME The scheme is targeted to boost the collection of Direct Taxes. Government plans to waive off interest and penalty for those tax payers who pay their pending disputed taxes by March 31. Share this post: Facebook-f X-twitter Contact Categories work from home tax self-employed salary slip roc rent paid rent payslip payroll deductions payroll pay slip mca kyc job change ITR india union target India income tax return income tax hra house rent allowance freelancing freelancer Form 16 finance employee compliance budget 2020 budget allowances Deepti Arora & Co. – Chartered Accountants Address 811, SIDCO ARAVALI APARTMENTS, GH-1,SECTOR 1, IMT MANESAR, GURUGRAM 122051 Contact Us +91 9999017642 +91 7827261120