NE NEWS SERVICE
NEW DELHI, FEB 1
Following are the highlights of the 2021-22 Budget presented by Finance Minister Nirmala Sitharaman in Parliament on Monday: Fiscal position and health outlay:
- Spending on healthcare hiked by 137 pc to over Rs 2.23 lakh crore
- Rs 35,000 cr outlay for COVID vaccine in fiscal beginning April 1
- Today India has 2 vaccines available, 2 more vaccines are expected soon
- Sharp increase in capital expenditure for next fiscal to Rs 5.54 lakh cr, up from Rs 4.39 lakh cr of last fiscal
- Fiscal deficit for current fiscal at 9.5 pc, against 3.5 pc budgeted
- Fiscal deficit for next fiscal pegged at 6.8 pc, government to borrow Rs 12 lakh crore
- Committed to bringing down fiscal deficit below 4.5 pc of GDP by 2025-26
- TAX PROPOSALS
- ITR filing not mandatory for senior citizens above 75 years, banks to deduct TDS
- Time bar for reopening I-T assessment cases halved to 3 years, for serious frauds it is 10 years
- Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014.
- Agri infra cess of 2.5 pc on gold, silver and dore bars; 35 pc on apples
- Agri infra cess of 30 pc on Kabuli chana, 10 pc on peas, 50 pc on Bengal gram/chickpeas, 20 pc on lentil (mosur); 5 pc on cotton
- Rs 2.5 per litre agri infra cess on petrol, Rs 4 on diesel
- New Agri Infra Development Cess to be applicable from February 2
- Tax dept to notify rules to remove hardships of double taxation faced by NRIs
- Tax holiday for startups, capital gains exemption extended by 1 yr
- Tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers.
- Rs 1.5 lakh tax deduction on payment of interest for affordable housing extended by 1 yr
- Exemption from tax audit limit doubled to Rs 10 cr turnover for companies doing most of their business through digital modes
- Proposes review of over 400 customs duty exemptions; to begin extensive consultation from October 2021
- Customs duty on certain auto parts, solar equipment raised
- ALLOCATION AND REFORMS
- FDI in insurance increased to 74 pc from 49 pc
- Disinvestment target pegged at Rs 1.75 lakh crore
- BPCL, IDBI Bank, two more PSU banks, one insurance company to be privatised among others
- PSU Bank recapitalisation pegged at Rs 20,000 crore next fiscal
- Aatmanirbhar health programme with an outlay of Rs 64,180 cr to be introduced
- Budget proposals rest on 6 pillars – health and well-being, physical and financial capital and infra, inclusive development for aspirational India, human capital, innovation and R&D, Minimum Governance, and Maximum Governance
- Govt to introduce a bill to set up development financial institution with an outlay of Rs 20,000 cr
- Voluntary vehicle scrapping policy to phase out old vehicles; fitness tests after 20 yrs for personal vehicles
- National monetisation pipeline for potential brownfield infrastructure assets
- Rs 3,726 cr for forthcoming Census which will be the first digital census.
