powered by globallinker

Highlights of Union Budget 2021-22

Highlights of Union Budget 2021-22

Economy

Finance Box

Finance Box

3 Feb 2021, 15:49 — 3 min read

The Union Budget was tabled on 1 February 2021. Here are some of the major highlights of this budget.

 

Income Tax

  • Exemption from tax filing for senior citizens above 75 years of age with only pension and interest income.
  • Scheme of Vivad se Vishwas extended till 28 February 2021.
  • No Advance tax on dividend income until it is paid by the companies.
  • Sec 44AB limit increased to 10cr from 5cr for persons whose transactions in cash does not exceed 5% of the total transactions.

 

Companies

  • Definition of small companies has been revised by increasing their threshold for capitalization to Rs. 2 crores from the current limit of Rs 50 lakhs.
  • Tax holiday for Start-Ups extended to 31st March 2022.
  • No restriction on turnover and paid-up share capital for the incorporation of a one-person company. NRIs will also be allowed to incorporate OPCs in India.
  • Presence in India for 120 days in a year is enough to start an OPC.

 

MSMEs

  • Lower interest rates on loans i.e around 1 to 1.5%
  • 50% subsidy on a patent application
  • MAT credit can be carried up to 15 years instead of 10 years
  • Reimbursement of ISO certification charges.
  • Easy access to govt websites and government tenders
  • Access to collateral-free loans

 

Banking

  • Government to allot Rs. 20,000 crore for bank recapitalization of PSBs.
  • Immediate access to bank deposits up to Rs 5 lakhs covered under the deposit insurance.
  • Government aims to amend Insurance Act to allow higher FDI, increasing the FDI limit in insurance to 74% from 49% and allowing foreign ownership.

 

Compliance

  • Revision in Custom duty rates on certain Goods & introduction of Customs duty policy from October 2021.
  • MCA Version 3.0 is being launched which shall make E-Scrutiny, E-Adjudication, and Compliance management simpler.
  • Income Tax Appellate Tribunal to become Faceless for taxpayers with a total income of up to Rs 50 lakhs and disputed income of up to Rs 10 lakhs.

 

Others

  • LIC IPO to be out in FY 2021-22.
  • Rs 44,000 crore under capital expenditure to be allocated to the Department of Economic Affairs in FY 2021-22.
  • Additional deduction of Interest up to Rs 1.5 lakhs on Affordable Housing loans extended up to 31 March 2022.
  • The allocation to healthcare in this budget has been increased substantially.

 

Also read: A realistic budget for a challenge that comes once in a century

 

To explore business opportunities, link with me by clicking on the 'Connect' button on my eBiz Card.

 

Image source: shutterstock.com 

 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker 

Comments

Posted by

Finance Box

Finance Box is one stop solution for all the financial needs and allied compliances for both Institutional and retail customers Our vision is to provide all the financial...

Join a growing community of 350,000+ SMEs. Create your account now.

Already a member?

Log in

Join a growing community of 350,000+ SMEs. Create your account now.

Already a member?

Log in