Finance Minister Nirmala Sitharaman has tried to address middle class through the General Budget 2021. However, the middle class is once again in despair. There has been no change in the income tax slab.
In a nearly two-and-a-half-hour speech, the Finance Minister announced that elderly people above 75 years of age would not have to file ITR.
This concession is for those whose source of income is nothing other than pension. Not only this, Finance Minister Nirmala Sitharaman has announced an agricultural cess of Rs 2.50 on petrol and Rs 4 on diesel.
A look at the provisions of Budget 2021
- No change in tax slab in the budget
- Agri-Infra Development Cess to be levied
- MSP increased to 1.5 times of production cost
- Custom duty on gold and silver reduced to 12.5 percent
- Custom duty on cotton was increased to 10 percent – clothes imported from abroad will be expensive. Customs duty on raw silk and silk yarn now 15 percent
- 7 textile parks to be set up over a period of 3 years
- Duty on copper was reduced to 2.5 percent. 15% Custom Duty on Steel Sco and Plastic Builder Ware
- Health budget increased to 2,23,846 crore
- 1,41,678 crore allocated for Swachh Bharat Mission 2.0
- 2217 crore allocation to combat air pollution
- Select leather out of custom duty
- One year tax exemption to projects of cheap houses – Additional deduction of Rs 1.5 lakh on the loan to be taken till 31 March 2022 for the purchase of cheap houses
- Exempt people over 75 years of age to file income tax returns
- NRI’s tax disputes will now be resolved online
- Committee will be formed to settle the dispute of small taxpayers
- Provision of 11 thousand crores for metro
- Railway plan 2030 ready for railways. A provision of a record 1,10,055 crore for the Railways
- Provision of Rs 1,500 crore financial incentive to promote digital payments
- 1,18,101 crore additional provision for the Ministry of Road Transport
- Proposal to start a Hydrogen Energy Mission in 2021-22. Under this, the generation of Green Infrastructure Fund will increase the rural infrastructure fund from 30,000 crore to 40,000 crore.
- Proposal to double micro irrigation fund from 5,000 crore
- A framework will be prepared in the energy sector in which consumers will be given the option to choose from more than one supplier company.
- Provision to increase the limit of FDI in insurance companies from 49% to 74% by amending the Insurance Act 1938
- In the budget of the Department of Economic Affairs, provided for projects, programs, departments, more than Rs 44 thousand crore was placed.
- A gas pipeline project will be started in the Union Territory of Jammu and Kashmir. An independent gas transport system operator will be formed
- The fiscal deficit is set at 9.5% of GDP in 2020-21. The fiscal deficit is estimated to be 6.8% of GDP in 2021-22. The target is to bring the fiscal deficit to 4.5% of GDP by 2025-26.