Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 on 1st February 2021.
She used a tablet to deliver the paperless Budget address.
This Budget comes amid the novel coronavirus pandemic,
which has led to massive economic disruption in India.
This is why the Budget assumes great significance.
Here are the highlights of Sitharaman’s speech:
1. She allocated ₹2,23,846 crore for health,
₹1.18 lakh crore for road infrastructure, ₹1,10,055 crore for Railways and ₹3 lakh crore for power.
2. Sitharaman said that the taxpayers must not feel overburdened
by the various financial revisions announced in the 2021 budget.
she surprised taxpayers by not announcing any change in income tax slab rates.
This has been heartily welcomed by many.
She also did not announce the much talked about COVID Cess as well. Cess is form of tax.
This was a surprise for many.
3. The Finance Minister proposed that senior citizens above 75 years of age
earning only pension and interest income from deposits
would not be required to file Income Tax Return.
4. ITAT is a judicial institution and specializes in dealing with appeals related to Tax.
Now people can file appeals with ITAT electronically.
If a personal hearing is needed it will be done via video-conferencing.
5. NRIs who choose to settle in India after retirement after spending significant time abroad on a job
faced difficulties with receiving money from retirement accounts, as they were heavily taxed.
Now the rules will be relaxed.
6. Once an individual declares their Dividend in their Income Tax Returns,
they will have to pay Advance Tax as per the norms.
7. Serious tax offences of concealment of income of over ₹50 lakh can be reopened till 10 years.
8. The finance minister has sanctioned ₹35,000 crore for the COVID-19 vaccine.
Sitharaman also said that if more funds are needed, the government will provide it.
9. Various Custom Duties on imported products have been revised.
These revisions will affect the price of various commodities.
Gold, silver and other precious metals like platinum and palladium will get cheaper.
This is due to the reduction in its custom duty.
An increase in custom duty can lead to certain products becoming expensive.
Iteams such as mobile phones, compressors for refrigerators,
LED lamps, solar lanterns, etc. will become expensive due to an increase in customs duty.
Imported alcoholic beverages will also get more expensive.
Leather products such as shoes, bags, handbags, diaries, etc will become expensive.
Automobile parts and polished synthetic stones are set to become costlier.
10. India has currently approved 2 vaccines. 2 more will be approved soon.
11. ₹300 crore was granted to the Government of Goa
for celebration of 50 years of Independence from the Portuguese.