Month: February 2021

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MSME

Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector

union budget-2021
Union Budget 2021-22 | Representational Image

Union Finance Minister Nirmala Sitharaman on Monday presented the central government’s Budget for the upcoming financial year 2021-22 in the Parliament. The MSME sector got a fair share of the estimated public expenditure for the next fiscal year set to begin from April 1 this year. In the budget unveiled today in Lok Sabha, Sitharaman has allocated a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. “We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore more than double the previous year,” said the Finance Minister. Union Budget 2021: How the post-COVID Budget will Impact the Corporates & Common Taxpayers?

The budget has also slashed the custom duty rates on various commodities to support the MSMEs affected by the COVID-19 induced economic slowdown. Customs duty on semis, flat, and long products of non-alloy, alloy, and stainless steels has been reduced to 7.5 per cent uniformly as per the Union Budget for 2021-22.  “To provide relief to metal recyclers, mostly MSMEs, I am exempting duty on steel scrap for a period up to March 31, 2022. Further, I am also revoking ADD and CVD on certain steel products,” said Nirmala Sitharaman.

The custom duties on steel screws and plastic builder wares has been increased from 10 per cent to 15 per cent while on prawn feed it has increased to 15 per cent from the existing 5 per cent. Meanwhile the duty on cooper scrap has been halved from 5 per cent to 2.5 per cent. For MSMEs dealing in the textile industry,  nylon chain has been made in par to polyester and other artificial fabrics as part of easing duty on raw materials and inputs.Union Budget 2021: Healthcare, Infrastructure will remain in the limelight!

In order to provide budgetary incentives to the promoters and exporters of garments, leather and handicraft products that are in the MSME sector, Nirmala Sitharaman announced the withdrawal of exemptions on imports of some types of leathers as they are manufactured domestically in quality and quantity.

Apart from the above measures, the finance minister has announced the establishment of a special framework for MSMEs for debt resolution. To resolve cases faster, the NCLT framework will also be strengthened including the implementation of the e-Courts system from the businesses in the sector. An additional year of tax holiday has also been provided to the affordable housing business.

Categories
Finance

Union Budget 2021 Live Updates: Healthcare expenditure doubles up in “Get Well Soon” budget

Budget 2021 live updates

With FM Nirmala Sitharam unveiling the annual budget on February, 1, the government focuses on the healthcare sector in the wake of the pandemic. The focus of the entire world has been majorly centered on the healthcare industry. Keeping with the trend, the post-COVID budget provides a major boost to healthcare and infrastructure.

In healthcare spending, Sitharaman announced a total spend of around Rs 2.23 Lakh crore on healthcare, which is a 137% increase from last year under the Atmanirbhar Swasth Bharat Yojana. The government also proposes a budget of Rs 35,000 crore on COVID 19 vaccine development and inoculation. This will ensure uninterrupted healthcare services for more people.

Along with the National Health Mission, the investment of Rs 64,180 crores over the next 6 years are expected to improve primary, secondary, and tertiary healthcare. The government has also proposed the establishment of critical care units and hospital blocks that will act as a catalyst in the country`s domestic market growth and place India as a key player in the global markets.

Categories
Finance

Union Budget 2021 Live Updates: No Income Tax Slab Change in Budget 2021.

Budget 2021 live updates

Finance Minister Nirmala Sitharaman has concluded Union Budget 2021 speech. She has proposed various benefits for the investors, depositors, and taxpayers. While keeping the Income Tax slab rates unchanged, FM Sitharaman has provided relief for senior citizens above 75 and NRIs by proposing few changes.

Senior citizens who are earning pension and income from deposits are exempted from filing Income Tax Return. Annual premium up to Rs 2.5 lakh on the maturity of ULIP will also be exempted from Tax. However, EPF interest income above Rs 2.5 lakh will be taxable.
The Government will also take all the necessary steps to provide GST relief by reducing inverted GST structures.

As the FM earlier had promised that the post-COVID Budget 2021 will be like no other, the common man was expecting that the government would expand some tax advantages through the budget. Several experts and professional bodies like ICAI had also recommended the government to increase the deduction limit under Section 80C of the Income Tax Act.

Categories
Finance

Union Budget 2021 Live Updates: Government focuses on Fiscal Deficit & Tax Exemption for Senior Citizens

Budget 2021 live updates

Finance Minister Nirmala Sitharaman is presenting the most awaited post-COVID Budget 2021. Not only the Union Budget 2021 will be paperless this year, but it will also put forward a concrete plan to boost the COVID-hit economy.

Finance Minister has announced some significant changes to the taxation process that involves the removal of income tax for senior citizens under certain conditions, new rules for the scrapping of double taxation for NRIs, and a reduction in the period of tax assessments. She has also announced that the advance tax liability on dividend income will arise after the declaration of payment of dividends.
In her speech, Nirmala Sitharaman also said that India`s fiscal deficit is expected to jump to 9.5 percent of Gross Domestic Product in 2020-21 as per Revised Estimates. The rise in fiscal deficit is estimated on the account of the increase in expenditure
While unveiling the Union Budget 2021-22 in the Lok Sabha, Sitharaman said that the government is expecting to bring down the fiscal deficit below 4.5 percent, which has soared to a high of 4.6 percent in 2019-20. The fiscal deficit is expected to go down below 4.5 percent of GDP by 2025-26

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What is a Fiscal Deficit?
Fiscal Deficit is the difference between the expenditure of the government and the revenue generated in a financial year. It is calculated both in absolute terms and as a percentage of the country`s gross domestic product (GDP).

According to the Finance Minister, the government is planning to borrow Rs. 80,000 crores during the residual two months of the current fiscal year.