Today Nirmala Sitharaman announced the budget(financial plan) of the fiscal year 2021. There are many details in the budget regarding every sector but not everyone has the time to read the entire budget and most people do not even care so we thought to address only the important points of this budget. So let us find out a few important parts about this year’s budget here at Truly Global.
We will be addressing the policies in points and categories for whom it fits.
COMMON CITIZENS:
Vehicle scrapping policy has been introduced to phase out old and unfit vehicles. All vehicles will have to undergo fitness test in automated fitness centres every 20 years(personal vehicles).
Pradhan Mantri Ujjwala Yojana (LPG scheme) will be extended to cover 1 crore more beneficiaries.
No Income Tax filing for people above 75 years who get pension and earn interest from deposits.
Reopening window for Income Tax assessment cases reduced from 6 to 3 years. However, in case of serious tax evasion cases (Rs. 50 lakh or more), it can go up to 10 years.
Compliance burden of small trusts whose annual receipts does not exceed Rs. 5 crore will be eased.
Duty on solar inverters will be raised from 5% to 20%, and on solar lanterns from 5% to 15%.
All nylon products will be charged with 5% customs duty tax.
Agriculture, infrastructure and development cess tax proposed on certain items including urea, apples, crude soy bean, sunflower oil, crude palm oil, kabuli chana and peas.
Proposal to increase Foreign Direct Investment(FDI) limit from 49% to 74% on Indian insurance companies.
Deposit insurance increased from Rs 1 lakh to Rs 5 lakh for bank depositors.
An IPO of LIC to debut this fiscal year.
BUSINESS AND STARTUP’S :
Vehicle scrapping policy has been introduced to phase out old and unfit vehicles. All vehicles will have to undergo fitness test in automated fitness centres every 15years(commercial vehicles).
Affordable housing projects to get a tax holiday for one year. Affordable housing projects can avail tax exemption benefit until March 31, 2021.
Customs duty tax on cotton raised from 0 to 10%.
Duty of copper scrap and naphtha reduced to 2.5%.
Custom duty on gold and silver will be be rationalised.
Strategic sale of BPCL, IDBI Bank, Air India to be completed.
Proposal to decriminalise Limited Liability Partnership Act of 2008. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence.
A Unified Securities Market Code to be created consolidating provisions of the Sebi Act, Depositories Act, and two other laws.
Two PSU bank and one general insurance firm to be disinvested this year.
An IPO of LIC to debut this fiscal year.
Excluding these there are many more proposals regarding to education, infrastructure and health but we had expected a more bending towards the economy budget because
nothing has been done to encourage investment by the middle class citizens if done would have created a rightward shift in aggregate demand,
1.The Aatmanirbhar Bharath scheme was put forward but now the budget has proposed to
raise import tariffs on a few goods which raises concerns about India’s trade policy,
2.IT firms India’s biggest export contributors were neglected in this budget because there
was no proposal of boosting the future IT
3.There was no mention about boosting consumption in the rural economy and about the
ongoing unrest on farm laws
So wholly there was nothing major done to increase the demand and help the rural economy as seen in the case of health sector and another few industries. We think that this budget was focusing mainly on health sector more than it should have done towards economy because no relief packages were released to help the people who have lost their jobs.
So what do you think about this years budget? Let us know in the comments below and if you like this post do not forget to share it with others.
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