The Union Budget 2021 was announced on February 1, 2021. Owing to the COVID-19 pandemic, many small changes were announced in an attempt to stabilise the economy. This budget has incorporated all those small changes keeping in view a larger objective. Union budget 2021 addresses key historical issues while attempting to boost economic recovery. Though no changes were made in the existing tax slabs, a few remarkable amendments have been made in taxation. However, the Budget 2021 primarily focuses on six pillars. Continue reading for the Budget 2021 snapshot.
Union Budget 2021 Highlights
Health and Wellbeing
- Focus on developing primary, secondary and tertiary health care systems under PM Atma Nirbhar Swasth Bharat Yojana
- Launch of Mission Poshan 2.0 in 112 districts to improve their nutritional outcome
- Focus on providing universal water supply and liquid waste management in urban areas
- Focus on measures to reduce and air pollution in forty-two cities
- Continued efforts in Urban Swachh Bharat Mission
- Aid in manufacturing, transport and distribution of COVID-19 vaccines
Physical and Financial Capital and Infrastructure
- Production Linked Incentive scheme (PLI) to boost job creation and Atma Nirbhar Bharat
- Announcement of seven new textile parks to be constructed in the next three years
- Expansion of the National Infrastructure Pipeline (NIP)
- Construction of more than 13,000 kms road length under Bharatmala Pariyojana project
- Economic corridors planned in Tamil Nadu, Kerala, West Bengal and Assam
- Betterment of the railway system under National Rail Pan 2030; complete electrification of the broad-gauge routes by 2023
- Boost to power infrastructure; the proposal to launch a Hydrogen Energy Mission
- Ujjwala scheme to be extended; proposal to add one crore beneficiaries
- Gas pipeline project for Jammu and Kashmir
Inclusive Development for Aspirational India
- Proposal to change the MSP regime to assure at least 1.5 times the cost of production
- Focus on rural infrastructure development and micro-irrigation
- Launch of ‘One nation one ration card’
- Social security and minimum wages, such benefits to be available for all workers covered by the Employees State Insurance Corporation
- Proposal to develop modern fishing harbours/landing centres in Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat, and to establish a Multipurpose Seaweed Park in Tamil Nadu
Reinvigorating Human Capital
- Strengthening of schools to include all components of National Education Policy (NEP)
- Establishment of a new central university in Ladakh
- Establishing 750 new residential schools in tribunal areas following the Eklavya model
Innovation and R&D
- Focus on strengthening the research ecosystem through National Research Foundation Scheme
- New Space India Limited (NSIL) to launch PSLV-CS51, carrying a few India satellites along with the Brazilian Amazonia
- Training of astronauts on generic space flight aspects
Minimum Government, Maximum Governance
- Transparent and efficient regulation of the allied healthcare professionals
- For quick resolution of contractual disputes, a conciliation mechanism is proposed
- Providing aid to the tea workers of Assam and West Bengal, aiming to help the women and children
- Planning and execution of the first digital census in India
Union Budget 2021: Reforms in Taxation
Personal Taxation
- No changes were made in the existing slab rate, surcharge, etc.
- Senior citizens above the age of 75 years, with the pension and interest thereon being the only source of income, will be exempted from filling the ITR
- Modification in the taxability of ULIPs issued on or after February 1, 2021, with an annual premium of Rs 2.5 lakhs or less
Corporate Taxation
- No changes in the existing tax rates
- ‘Goodwill’ shall no longer be considered as a depreciable asset
- Incentives for developing and building affordable housing projects approved by the authorities before March 31, 2022
- The voluntary transition of primary cooperative bank or urban co-operative banks (UCB) into a banking company through the transfer of assets and liabilities
Indirect Taxation
- GST will now be levied on the supply of goods or services by any person, other than an individual, to its members or constituents or vice versa
- The input tax credit can be availed only if the details of the invoice/debit note are furnished by the supplier in GSTR1
- Modification in audit requirements for companies with turnover exceeding the prescribed limit
PDF Version of the Snapshot of Union Budget 2021-22 is attached:- Union Budget Snapshot – 2021-22
DISCLAIMER:
This document has been prepared in summary form by Dewan P. N. Chopra & Co. from sources believed to be reliable. For further details, please refer to Budget Speech, Finance Bill 2021 and Explanatory Memorandum. The information contained herein is intended only for the person to whom it is sent. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Recipients should conduct and rely upon their own examination, investigation and analysis and are advised to seek their own professional advice. The information and data contained herein is not a substitute for the recipient’s independent evaluation and analysis. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies on it.