Budget Highlights: Rs 1.5 lakh additional deduction for affordable housing loans taken until March 31, 2022


Budget Highlights

New Delhi: Finance Minister Nirmala Sitharaman presented her third budget today. The 2021 Union budget was eagerly awaited because it came at a time when the economy is reeling from the negative impact of the coronavirus. The pandemic, which has left millions dead and unemployed, is far from over and people have been eagerly awaiting the budget to see what the government has announced to boost economic recovery and people’s incomes.

Here are the highlights of the 2021 Union budget:

Circumstances like never before

The preparation of this budget was undertaken under circumstances like never before, given the calamities that affected a country or a region within a country. But what we have endured with COVID-19 until 2020 is Sui generis. When I presented the budget last year, we could not have imagined that the global economy would be pushed into contraction.

Mini-budget:

In May 2020, the government announced the Atmanirbhar packages. Two more later in the year. The total financial impact of all AatmaNirbharBharat packages, including actions taken by RBI, was around Rs 27.1 lakh crore, or over 13% of GDP. The government has stretched its resources to benefit the poorest of the poor Prime Minister Garib Kalyan Yojana, the three Aatma Nirbhar Bharat packages and subsequent announcements were like five mini-budgets in themselves.

Health:

  • Investments in health infrastructure have increased significantly
  • Prime Minister Atma Nirmbhar Swasthya Bharat Yojna will be launched
  • Rs 64,180 crore spending plan for health care over the next six years. This is in addition to the National Health Mission.
  • 17,000 rural and 11,000 urban health and well-being centers to be set up
  • Integrated public health laboratories will be set up in each district
  • This will develop the capacities of primary, secondary and tertiary health care
  • 3,500 crore for the covid vaccine in 21-22. Committed to providing more when needed
  • Health expenditure: increase of more than 137% year-on-year
  • Urban Swachh Bharat Mission 2.0 will be deployed with an expenditure of Rs 1.48 billion over 5 years:

Auto:

  • Soon a voluntary policy of shit vehicles
  • Vehicles to be tested
  • Personal vehicles – 20 years. commercial – 15 years

Infrastructure and financial capital:

  • Manufacturing needs to grow double-digit on a sustained basis for a $ 5,000 billion economy
  • Textiles – The textile investment mega park program will be launched. This will be in addition to the PLI scheme.
  • 7 textile parks will be created over 3 years
  • 217 projects have been completed
  • The PIN is a specific goal that the government is committed to achieving.
  • Infra needs long-term debt financing
  • A new bill to develop a new institution.
  • Loan portfolio of 5 lakh crore for this DFI within 3 years
  • National monetization pipeline for brown classified assets to be launched
  • NHAI and PGCIL will play a key role

Road and rail projects:

  • 500 km of national road works in Tamil Nadu for an investment of 1.03 lakh crore
  • 1,100 km in the state of Kerala for an investment of Rs 6,500 crore
  • 6,075 km to West Bengal at a cost of Rs 25,000 crore
  • 1.18 lakh crore for the Ministry of Road Transport and Highways for the Ministry of Roads and Transport
  • Railway has prepared a National Rail Plan for India 2030
  • WDFC and EDFC will be commissioned by June 2022
  • The Son Nagar-Gomosh EDFC section will be resumed in PPP
  • New dedicated freight corridors – Itarsi-Vijaywada, Kharagpur-Vijayawada and Bhusawal-Dankuni
  • Vistadome coaches on tourist routes
  • Automatic train protection system in busy corridors.
  • More than 1 lakh in the capital infrastructure

Urban transport, Metro:

  • Urban infrastructure – New program at cost of Rs, 8,000 crore to increase bus transport in cities
  • 1,016 km of metro lines are under construction in the country.
  • CCP funding will be provided for phase 2 of the Kochi metro
  • Chennai Metro Phase, Bengaluru Metro Phases 2a and 2b, Nagpur Metro Phase 2 and Nashik Metro will also receive matching central funding.

Energy, Power:

  • Distribution companies are monopolies
  • We must offer consumers choice
  • A framework will be put in place to allow consumers to choose between several suppliers
  • A framework to be put in place to give consumers the alternative of choosing more than one distribution company
  • Expenditure of the new diet: 3 05,984 crore rupees over 5 years

Shipping:

  • New regime to facilitate flagging of ships in India
  • Ship recycling – Efforts will be made to bring more ships to India
  • 7 projects worth Rs 2000 crore will be proposed in the main ports in FY21-22
  • Merchant Ship Flag Promotion Program: Expenditure of Rs 1,624 crore over 5 years

Oil, natural gas and solar energy:

  • Ujjwala program will cover 1 crore of additional beneficiaries
  • 100 additional towns to be covered under the town gas distribution network
  • 1000 crore in commission of solar energy

FY22 budget deficit at 6.8%

  • The government has set a budget deficit target of 6.8% for the net fiscal year. For the current fiscal year, the government had set the budget deficit at 3.5% for fiscal year 21 in the last budget before the start of the Covid-19 crisis.

The government allows one-person businesses

  • No restriction on paid-up capital and turnover, to encourage the creation of single-member companies

  • Converting a one-person business to any other type, reducing the residence limit from 182 days to 120 days
    Allowing non-resident Indians to establish sole proprietorship companies in India

  • The FM proposed to revise the definition under the Companies Act of 2013 for small businesses by increasing their capitalization threshold not to exceed Rs 50 lakh not to exceed Rs 2 crore and the turnover not exceeding not Rs 2 crore not to exceed Rs 20 crore

PSB recapitalization

  • Government allocates Rs 20,000 crore for bank recapitalization, while FM stresses need to clean up banks’ books

The government will amend the Insurance Law to allow an increase in FDI

  • The limit of FDI in insurance goes from 49% to 74%.
  • FM proposes to consolidate the provisions of the SEBI Law, the Custodians Law, the Securities Contracts Regulation Law and the Government Securities Law

Tax:

  • Seniors – people over 75 and over who have only retirement income and interest do not need to file. Their banks will deduct the tax
  • A dispute resolution committee will be set up for small taxpayers
  • An anonymous national income tax appeals tribunal to be set up
  • NRI – Rules will be notified to reduce double taxation issues
  • An additional deduction of Rs 1.5 lakh will be available for loans until March 31, 2022
  • Affordable housing projects can also benefit from a tax holiday until March 31, 2022
  • Some employers do not deposit FPs and tips Late deposits will not be allowed as a deduction for employers
  • Eligibility for tax exemptions extended by one year
  • Anyone with taxable income up to 50 lakh and questionable income up to 10 lakh should apply to the committee
  • Payment of dividends in REIT and INVIT exempt from TDS
  • Reduction of tax on reduced rate dividend income

Customs:

  • Over 400 old exemptions will be reviewed
  • electronics and mobile phone industry – parts of phones will drop from zero to 2.5% tariffs
  • Metal recyclers – Exemption from duty on scrap metal until March 31, 2022
  • Copper scrap – Duty reduced from 5% to 2.5%
  • Chemicals – Duty on naphtha will be reduced to 2.5%
  • Rationalization of tariffs on gold and silver
  • Staged manufacturing plan for solar cells
  • Eliminate exemptions on tunnel boring machines
  • Steel screw – Duty from 10% to 15%
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