Union Budget 2021: Key Highlights

Union Budget 2021: Today, Finance minister Nirmala Sitharaman announced the Union Budget for the year 2021. Also Read | Union Budget 2021: Govt committed to welfare of farmers This year, it is the 3rd budget to be presented by Nirmala Sitharaman and 9th budget of the Modi government. The budget was paperless as the Finance Ministry decided not to print the budget documents because of the Covid-19 pandemic. Union Finance Minister Sitharaman said that the preparation of the Budget 2021-22 was undertaken in circumstances like never before. In Union Budget 2021, FM Sitharaman said the budget proposals rest on six pillars. These are Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, and Minimum Government, and Maximum Governance. The Key Highlights of Union Budget 2021 include:

• FM Sitharaman said, Govt proposes to relax norms to attract more foreign investment in infrastructure sector.
• FM also proposed tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers.
• Govt. proposes to review over 400 old exemptions in indirect taxes; to begin extensive consultation from October 2021.
• Customs duty on iron and steel to be unified at 7.5 percent:
  • Duty exempted on steel scrap
  • Copper scrap duty down from 5 % to 2.5 %.
  • Rationalizing customs duties on gold and silver, says FM in Budget for 2021-22.
  • Customs duty on certain auto parts, solar equipment raised.
  • Customs duty on cotton, raw silk raised.
• Govt proposes to relax norms to attract more foreign investment in infrastructure sector.
• NRI who return to India face difficulty. Govt. proposed to amend rules to remove double taxation.
• Union Budget Housing Loan legibility extended till March 2022. It means additional deduction of 1.5 lakh on payment of interest will be provided to individual taking loan till March 31, 2022.
• Govt. said it has made record collections of GST in the last few months.
• Relief for senior tax payers
  • Senior citizens above the age of 75, who have only pension and interest from FDR, will not need to file returns.
  • The bank will deduct the tax: FM
• Govt. allocates Rs 3,726 Cr for forthcoming Census which will be the first digital census.
• Govt. says modalities worked out for national research foundation; earmarks Rs 50,000 Cr over five years.
• Finance Minister stated that Covid-19 led to weak revenue inflow but a high outflow to manage the pandemic.
• One nation, one ration card plan under implementation in 32 states, 1 UT.
• Govt committed to welfare of farmers, says FM
• FDI limit in insurance to be upped from 49 per cent to 74 per cent with safeguards on foreign investments.
• Two new technologies in Metro railways: New technologies called ‘light metro’ and ‘metro neo’ which are less costlier will be used for tier 2 cities and peripheral areas of tier 1 cities.
• FM announces voluntary vehicle scrapping policy to phase out old vehicles; fitness tests after 20 yrs for personal vehicles.
• Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetized, says FM in Budget for 2021-22.
• Capital expenditure budget to increase to Rs 5.54 lakh cr in FY'22 from Rs 4.39 lakh cr in RE for FY'21.Also Read | Shiromani Akali Dal walks out of Parliament; boycotts budget speech
• Seven textile parks to be established over three years.
• New Scheme for drinking water and sanitation: 4,378 urban local bodies will see a massive investment of Rs 2,87,000 crore over five years. 2.68 crore households will benefit from the scheme.
• FM said, Aatmanirbhar packages after Covid-19 cost Rs 27.1 lakh crore. It is 13 per cent of our GDP. The packages were like 5 mini budgets.
• We have two Covid-19 vaccines, and two or more vaccines are expected soon.
• Railway to monetize dedicated freight corridors, says FM Sitharaman in her Union Budget speech on monetization of assets.