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Union Budget 2021 Live Updates: Expect Costlier Phones as Govt hikes customs duty on parts

Budget 2021 live updates

Finance Minister Nirmala Sitharaman today presented her third Union Budget in the Parliament this year. The Budget 2021 is based on the six pillars as physical, financial capital and infrastructure, health and well-being, inclusive development for aspirational India, reinvigorating human capital, innovation, and R&D, and minimum government and maximum governance.

Calling the current Budget an active and not a reactive budget, the FM stated that India is moving from Covid-related reforms to Atmanirbhar resolve. All eyes were set on the Union Budget 2021 and besides the parliamentarians, it was seen by both domestic and foreign investors, middle class, and corporates, along with various interest groups like farmers.

The 2.5 % duty hike is also applicable on parts of manufacture of PCBA (Printed Circular Board Assembly)of cellular mobile phones, camera modules, and manufacture of connectors and raw materials.
In a bid to improve the manufacturing sector in India, the government has increased the customs duty for up to 10% on mobile chargers, sub-parts of phones. This step could lead to a rise in the cost of mobile phones by 3-4% from February 2, 2021.

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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.

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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.

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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.

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Finance

Union Budget 2021: How the post-COVID Budget will Impact the Corporates & Common Taxpayers?

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

With the economy slowly gaining momentum from the pandemic, a lot of hopes are riding on the Union Budget 2021. Finance Minister Nirmala Sitharaman, who is supposed to announce the first post-COVID Budget 2021 on February 1, is ready to steer the Indian economy back on the growth track.

Due to the global pandemic, almost all the sectors of the economy were knocked-off in 2020. However, there have been few indications that some of them are showing a quick recovery.

The major challenge for the Finance Minister is to hit the perfect balance between managing the fiscal deficit considerations and reviving broad-based growth.

While the auto and real estate sectors are still struggling, MSMEs across several sectors are still facing the financial crunch, resulting in little or no job creation. In the wake of the pandemic-induced economic shock, the government is expected to provide more tax breaks to netizens, so that they can have higher disposable incomes.

Now that the end of the pandemic is in sight, all eyes are on Union Budget 2021 in the hope of some much-awaited reliefs and incentives. The corporates and individual taxpayers are all expecting the tax concessions in this year`s budget.

Let us look at some of the most crucial expectations that the taxpayers have from the upcoming Union Budget 2021:

Tax Reliefs for Corporates

Before the pandemic struck the world, the corporate taxes in India were reduced to 22% for companies and 15% for manufacturing firms. So, any further reduction in corporate tax seems unlikely. However, to support the companies to cope up with the losses suffered during the lockdown, investment-based reliefs and flexible adjustment of the previous year`s losses could be in the pipeline.

Insurance Awareness

The importance of insurance in India has been low for many decades. In 2020, people became more aware due to the pandemic and the high medical costs related to it. Perhaps, this is an excellent time for the insurance sector to increase its foothold in the country.

Worst Hit Industries & Sectors

Several industries like aviation, food & beverages, tourism, etc., have suffered major losses due to the COVID-19 pandemic. The recovery time for these sectors will also be longer as compared to the other industries that are already on their path to recovery.

To provide relief to worst-hit sectors, the government may extend their 8-year-loss-carrying forward window. These industries will have minimal income levels in this as well as in the upcoming financial year until they recover completely.

Vivad se Vishwas Scheme

The introduction of Vivad se Vishwas Scheme was one of the highlights of the 2020 Budget. The government aimed to increase their tax revenues by offering to settle cases upon 100% payment of disputed taxes. This would result in the saving of interest as well as the penalty.

However, there were fewer takers of the scheme due to the pandemic. Thus, the government might consider extending this scheme so that more taxpayers can avail the benefit of this scheme in the upcoming Union Budget 2021.

While there are numerous expectations from Budget 2021, the government has announced various relief policies to keep the economy afloat.

The Budget 2021 will be announced on February 1. Finance Minister Sitharaman will deliver the longest ever budget speech last year. This year the Union Budget 2021 will be paperless.