Hon’ble Finance Minister Nirmala Sitharaman presented Union Budget for the Financial Year 2021-22 on February 1, 2021 which is the first Budget of this new decade & also a digital one in the backdrop of COVID-19 crisis. This year’s Budget rests on the Six Pillars of:
- Health & Wellbeing
- Physical & Financial Capital & Infrastructure
- Inclusive Development for Aspirational India
- Reinvigorating Human Capital
- Innovation & Research & Development (R&D)
- Minimum Government & Maximum Governance
The Government announced a series of reforms aiming to foster the overall growth of the economy. Laying a vision for Aatma Nirbhar Bharat (Self reliant India), the Budget reforms & proposals are likely to further strengthen the pledge of Nation first, Doubling Farmer’s income, Strong Infrastructure, Healthy India, Good Governance, Opportunities for Youth, Education for all, Women Empowerment & Inclusive Development among others.
On Direct Taxes front, relief given to senior citizens above 75 years of age holding pension & interest income from filing Income-tax returns, reduced time limit for completion of Income-tax proceedings including setting up of Dispute Resolution Committee, faceless proceedings before second appellate authority (Tribunal), relaxation to Non-Resident Indians (NRIs), increase in exemption limit for tax audit & relief for dividend income, steps to attract foreign investment into infrastructure, relief to affordable housing & rental housing projects, tax incentives to International Financial Services Centre (IFSC), relief to small charitable trusts & steps for incentivizing startups in the country, are some of the key proposals.
From an Indirect Taxes perspective, the Central Goods & Services Tax (CGST) Act is amended to remove anomalies such as inverted duty structure, revised custom duty rates have been prescribed for certain items, Agriculture Infrastructure & Development Cess (AIDC) has been newly imposed on petrol & diesel, exemption on import of leather has been withdrawn as it is domestically produced, new initiative called ‘Turant Customs’ has been introduced for faceless, paperless & contactless customs measures.
To read the key highlights of the budget, click here: key Highlights Budget 2021 PIBM
To read the analysis of KrayMan Consultants on the budget, please click: https://www.krayman.com/wp-content/uploads/2021/02/India-Union-Budget-2021.pdf