UNION BUDGET 2021; SALIENT FEATURES

by Abha Kashyap Managing Patner

Relying on six pillars the Union Budget 2021 was presented by Finance Minister, Nirmala Sitharaman on February 1st 2021. In the wake of Covid-19 pandemic, the budget was presented in a paperless format for the first time ever. The budget will be disseminated electronically.

The focus of this year’s budget proposal rests upon the six pillars from Health, Infrastructure, Physical and Financial capital to Innovation, including Minimum Government and Maximum Governance. The vision for an ‘Atmanirbhar Bharat’ (Self-reliant India) was laid down in the Budget with the Finance Minister calling attention to the government’s efforts by way of various schemes due to the Coronavirus outbreak.

A new scheme namely, ‘PM Atmanirbhar Swastha Bharat’ is about to be launched over the next six (6) years, the total outlay of this scheme is going to be Rs. 64,180 Crore. This scheme is likely to provide more impetus to the healthcare system. About Rs. 35,000 Crore will be allocated as additional funds for Covid-19 vaccines by the Government as proposed.
No alterations were made to the income tax slabs for the financial year 2020-21. The direct taxes have been left untouched. However, steps have been taken with respect to direct tax incentives so that taxpayers can comply with ease. Senior citizens who are above the age of 75 years and those who have income only in the form of pension or interest income have been provided relief from the income tax filings and are not required to file the same.
Vehicles will now undergo a fitness test with the help of a Voluntary Vehicle Scrapping Policy. As per this test, the fixed time limit will be 15 years for commercial vehicles and 20 years for passenger vehicles. All the further details related to this policy will be provided shortly. As announced by the Finance Minister, a new bill will come into existence according to which a Development Financial Institution (DFI) will be established. This project will be capitalized with Rs. 20,000 Crore and further the DFI can rent up to Rs. 5 Lakh Crore in 3 Years.
With an aim to attract more foreign investment in infrastructure sector, the government has proposed to ease norms. A proposed scheme will be brought into motion so as to provide financial incentives for the promotion of the digital modes of payment and Rs. 1500 Crore will be allocated for this scheme.

For more information visit https://www.indiabudget.gov.in/

Originally posted on www.kpalegal.com on 1Feb 2021