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Budget 2021

Updated: Feb 1, 2021

PART A

Clean India

  1. Jal Jeevan Mission aims at a universal water supply in urban local bodies with household tap connections. Urban Swacch Bharath 2.0 - Allocation of 1.41 lakh crore over a period of 5 Years

  2. Swacch Bharat and Swasth Bharat - reduction in single-use plastic, bio-remediation of all legacy dumpsites; budget of 1,41,678 crores over a period of 5 years from 2021.

  3. Life of vehicles under scrapping policy - 20 Yrs for Personal 15 Years for Commercial Vehicles

Textile

  1. 7 textile parks will be launched over 3 years

MSME

1.97 lakh crores over five years starting this FY to nurture global manufacturing champions and increase jobs for youth

  1. 15700 crores to MSMEs

The monetisation of Operational Govt Services

  1. Railway freight corridor will be monetised

Roads

  1. 25000 crore for roads in Kolkata.

  2. Chennai- Kollam corridor announced, Details in Annexure 2 of FM's Speech

  3. National highway works of Rs.19,000 crore in progress in Assam

  4. 3,500 km on National Highway Works in Tamil Nadu at the cost of Rs 1.03 lakh crore

Railways

1. 1,18,101 lakh crore for Ministry of Road Transport and Highways

2. East-west and north-south freight corridor will be ready in 2022

3. 100% electrification of broad-gauge routes will be completed by December 2023

4. High-Density Network routes will be provided with Automatic Train Protection System

5. Metro lite and metro neo to provide metro at a lower cost in tier 2 cities & peripheral areas



Power Infrastructure

1. Power Infra- 139 GW of installed capacity added. distribution companies across the country are monopolies. The framework proposed to give consumer alternative to choose from more than 1 distribution company

2. National comprehensive Hydrogen Energy mission for generation green hydrogen


Shipping

1. Subsidies for local shipping companies to support greater training and employment for Indian sea-farers.

2. The government makes effort to bring more ships to India from Europe


Laws

1. Security market Code is proposed to consolidate laws relating to SEBI act, Govt Securities act, SCRA, Regulation and Arbitration Act

2. Increased FDI from 49% to 74% in the Insurance sector is proposed

3. Retained earnings transfer to General Reserve will be specified and changes in managerial remuneration for an independent director.

4. DICGC Act, 1961 to streamline the provision where the depositors of the bank can get easy access to deposits through insurance in the case of a stressed bank. Decriminalisation of compoundable offences is completed, and similar provision will be made under LLP act

5. Small companies’ definition changed turnover and paid-up capital definition changed to 2 crores,

6. OPC will have no compulsion for paid-up share capital, director’s minimum residency will be 120 days from 182 days

7. NCLT framework will be strengthened.

8. MCA 21 version 3.0 will have an additional module for e-scrutiny, e-adjudication


Disinvestment in PSU

1. LIC IPO will be carried out

2. Two PSUs and one insurance company will be considered for disinvestment strategy

3. Receipts from disinvestment estimated at Rs.1.75k lakh crore


Workers

1. Migrant workers benefit from One Nation One Ration scheme as they can claim the ration from anywhere in the country

2. Single registration and licensing for employers

3. A portal to be launched for gig workers, building and construction workers.

4. Women allowed to work in all categories and in night shift with adequate safety measures

5. Credit flow under Stand Up India for SC/ST and women: Reduce the margin money requirement from 25% to 15% only.


Schools & education

1. 15000 schools to become full explorer of NEP

2. 100 New Sainik Schools (Pvt) with NGO

3. Umbrella structure proposed for government schools.

4. SC and ST Welfare: 750 model Ekalavya residential schools

5. Amendment in apprentice act for providing training to graduates and diploma holders. National apprenticeship training scheme to be amended at a cost of Rs.3,000 crore.

6. Inter-training programme for India-Japan tech up-gradation and vocational training

7. Strengthening research infrastructure

8. 1500 crores financial incentive for a digital mode of payment

9. National Language translation mission for educating govt facilities in all languages

10. 1,000 crore for tea works in Assam and West Bengal



Part B- Tax

Income tax

1. ITR filled has been doubled to 6 crores

2. Pension, interest income for senior citizen exempt from filing ITR

3. The corporate tax rate was slashed to make it lowest across the world just before the pandemic.

4. Time limit to reopen the assessment procedures under the Income Tax Act is reduced from 6 years to 3 years

5. Relaxations to NRIs - Issues with accrued income in foreign retirement accounts. Rules to be proposed to remove hardships

6. Exemption from audit

1. If 95% transaction digital – 10 crores will be audit limit

7. Advance Tax liability on dividend income shall arise only after declaration or payment of dividend.

8. 80EEA to be extended to loans taken up to 31st March 2022

9. Tax exemption in IFSC; Tax holiday for aircraft leasing and rental companies

10. ITR prefilled increased; Capital gains from listed securities; interest from banks will be prefilled

11. Deducted PFs but not deposited by the employer. A late deposit will not be allowed as a deduction for the employer

12. 80IAC extended up to 31st March 2021


Indirect Tax

1. Mobiles batteries will get a 2.5% rate instead of NIL rate

2. EVD and CVD from Steel products removed

3. FM proposes to review 400 more old exemptions this year through extensive consultations. A revised customs duty structure will be introduced.

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