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Union Budget 2021 LIVE Updates by FM Nirmala Sitharaman ; IT exemption for senior citizens over 75 years

Finance Minister Nirmala Sitharaman is presenting the Union Budget. She has said that FY21 fiscal deficit is being pegged at 9.5% of GDP
Finance Minister Nirmala Sitharaman is presenting Union Budget 2021-22. She is using a ‘made in India’ tablet computer to deliver a paperless Budget address. This Budget assumes greater significance as it comes amid the novel coronavirus pandemic, which has led to massive economic disruption in India

FM Nirmala Sitharaman says Centre will take steps to smoothen GST further
Tax exemption for affordable housing for migrants
No I-T filing for senior citizens 75-yrs of age
FY21 fiscal deficit pegged at 9.5% of GDP
Independent gas transport system to be set up, 100 more districts will be added under City Gas Expansion: FM Sitharaman
FY22 Divestment target is at Rs 1.75 lakh crore
FY22 capex targetted at Rs 5.54 lakh crore: FM Sitharaman
Will introduce bill to set-up development finance institution: FM Sitharaman
Rs 35,000 crore for for COVID-19 vaccines
Voluntary Vehicle Scrapping Policy
FM Nirmala Sitharaman begins Union Budget address
Cabinet approves Budget 2021
Budget 2021 must support MSMEs, farmers and workers to generate employment: Congress leader Rahul Gandhi
FM Nirmala Sitharaman reaches Parliament ahead of Budget presentation
Huge borrowing target of Rs 12 lakh crore. Initial reaction: sell-off in Gsecs. India 10-year bond yield up by around 10 basis points.
Extension of tax holiday on affordable housing loans up to March 22 augurs well for building material companies such as HIL, Visaka Industries and Everest Industries.
The key to financial inclusion today is digital adoption and the allocation of 1500 cores as incentives for promoting digital payments is a step in the right direction
Tax exemption for aircraft leasing company may finally see India getting its first player in this aviation segment. Till now, Indian aviation industry is dominated by lessors from Ireland and Hong Kong.

Tax exemption for notified affordable housing for migrants workers and the deduction on payment of interest for affordable housing has been extended by 1 year.
Infrastructure debt funds may issue tax efficient 0 coupon bonds
We proposed tax exemption for Aircraft Leasing Companies
I-T return forms to now be pre-filled with Capital Gains and Bank Interest details
Proposed to make I-T Appellate Tribunal Faceless
Tax audit threshold raised to Rs 10 crore for digital transactions
Dividend payment by REITs and InvITs not subject to TDS
Advance tax liability to arise only after payment of dividends
Good news for real estate sector. Affordable housing: the additional Rs1.5lakh tax deduction given on loans taken to buy a house in an affordable housing project, deadline extended till 31 March 2022. Affordable housing projects also get an extension for tax benefits, for projects completed till March 31, 2022. Affordable housing has been a fast growing segment for real estate companies.
Alteration in double taxation rules and taxation for NRIs, especially who return to India. Relief is also being looked at for those who face difficulty in getting credit for taxes paid in India.
No Income tax (I-T) filing for senior citizens above 75 years of age having only pension.
Further, the timeline for re-opening of tax returns has been reduced to three years from six years. To set up faceless dispute resolution committee for small taxpayers.
Textile parks will boost the flagging competitiveness of Indian exporters vs Bangladesh and Vietnam. India’s share of readymade exports to the US and Europe has been stagnant at 5% and 4%, respectively, for years.
The Centre will discontinue the National Small Savings Fund loans to the Food Corporation of India and will introduce amendments to the FRBM Act on revised fiscal path.
Rs 3,758 crore has been allocated for the upcoming Digital Census. Rs 1,000 crore has been allotted for welfare of tea workers in Assam and West Bengal.
A Deep Ocean Mission will be launched with outlay of Rs 4,000 crore over five years.
Four Indian astronauts are being trained in Russia for Mission Gaganyaan
Revenue grant of Rs 1.18 lakh crore has been given to 17 states in FY22.
There is a strong focus on digital covering setting up of fintech hub at gift city, enhancing digital payments and use of AI ML etc in governance – all provides the a great platform for digital india. Further, one person company and relaxing no of days for NRIs will help start up creation and help in ease of doing business.

Custom duty policy should promote domestic manufacturing; Thrust has to be on easy access to raw materials; Propose to review 400 old customs exemptions this

To put into place new customs duty structure by Oct-1, 2021

Withdrawing exemptions on some parts of mobile phones

Exempting duty on steel scrap for a specified period; Reducing customs duties on iron and steel in a uniform manner

Cutting duty on copper scrap 2.5% from 5%

Cutting Basic Customs Duty rate on nylon chips & nylon fibre

Rationalizing customs duties on gold and silver

To introduce phased mfg plan for solar cells & panels

Withdrawing exemption on tunnel boring machines, to be taxed at 7.5%

Increasing customs duties on some auto parts

Withdrawing exemption on certain kinds of leather imports

10-points to Union Budget 2021:

  1. Finance Minister Nirmala Sitharaman on Monday proposed more than doubling the healthcare spending to ₹ 2.2 lakh crore. Out of this, an amount of ₹ 35,000 crore has been allocated for developing Covid-19 vaccines.
  2. The government has increased capital expenditure by around 34 per cent to ₹ 5.54 lakh crore in an attempt to nurse the country’s economy back to health. Budget 2021 provided every opportunity for the economy to capture pace and grow sustainably, Ms Sitharaman said.
  3. Ms Sitharaman expanded the National Infrastructure Pipeline to cover 7,400 projects by 2025. She also announced the creation of a development finance institution called the National Bank for Financing Infrastructure and Development, with a capital base of ₹ 20,000 crore and a lending target of ₹ 5 lakh crore over a 3-years time horizon
  4. In an incentive to the farming community, the government announced an increase in agriculture credit target to ₹ 16.5 lakh crore in FY 2021-22. The Finance Minister also gave an assurance that the procurement of produce by the government under the minimum support price (MSP) will continue at a steady pace.
  5. The Foreign Direct Investment (FDI) in the insurance sector has been increased from 49 per cent to 74 per cent
  6. In a big relief to citizens, the Finance Minister announced that the compliance burden will be reduced for citizens aged 75 years and above. Senior citizens with only one pension and interest scheme are exempted from filing income tax returns.
  7. Ms Sitharaman said the government will infuse ₹ 20,000 crore into public sector banks (PSBs) in 2021-22 in order to meet the regulatory norms. For the current financial year, the government had made a provision of ₹ 20,000 crore towards recapitalisation.
  8. In order to incentivise the purchase of affordable house, the finance minister proposed to extend the period for claiming an additional deduction for the interest of ₹ 1.5 lakh paid for home loans by one year to March 31, 2022
  9. Nirmala Sitharaman announced special infrastructure projects for poll-bound states of Assam, West Bengal, Kerala and Tamil Nadu. A whooping 1.03 lakh crore has been set aside for Tamil Nadu; Kerala has been earmarked ₹ 65,000 crore and Assam has received ₹ 34,000 crore.
  10. According to Ms Sitharaman, Budget 2021 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.

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