Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 on 1st February 2021. She used a tablet computer to deliver the paperless Budget address. This Budget assumes great significance as it comes amid the novel coronavirus pandemic, which has led to massive economic disruption in India. 

Here are the highlights of Sitharaman’s speech: 

1.  She allocated ?2,23,846 crore for health, ?1.18 lakh crore for road infra, ?1,10,055 crore for Railways and ?3 lakh crore for power. 

2. Sitharaman said that the tax system should put a minimum burden on the taxpayers. She surprised taxpayers by not announcing any change in income tax slab rates. She did not announce COVID Cess as well.  

3. The Finance Minister proposed that senior citizens (above 75) earning only pension and interest income from deposits would not be required to file Income Tax Return.  

4.  Income Tax Appellate Tribunal (ITAT) deals with issues related to Tax. Now people can file appeals with ITAT electronically. If a personal hearing is needed it will be done via video-conferencing.  

5. NRIs who choose to settle in India after retirement after spending significant time abroad on a job faced difficulties with receiving money from retirement accounts. They faced heavy taxation. Now the rules will be relaxed. 

6.  Once an individual declares their Dividend in their Income Tax Returns, they will have to pay Advance Tax as per the rules. 

7. Serious tax offences of concealment of income of over ?50 lakh can be reopened till 10 years. 

8. ?35,000 crore has been sanctioned for the COVID-19 vaccine. Sitharaman also said that if more funds are needed, the government will provide it. 

9. Various Custom Duties have been revised. This will affect the price of various commodities. Gold, silver and other precious metals like platinum and palladium will get cheaper. Imported products, mobile phones, power banks, compressors for refrigerators and air conditioners, raw silk, LED lamps, solar lanterns, etc. are set to become more expensive as the FM proposed increasing customs duty on such items. 

Imported alcoholic beverages will also get more expensive. Other imported items that are set to become more expensive include automobile parts, leather products, cut and polished synthetic stones, etc.

10. India has currently approved 2 vaccines. 2 more will be approved soon. 

 ?300 crore granted to the Government of Goa for celebration of 50 years of Independence from Portugal.

Tags

• Union
• Budget
• 2021
• Nirmala
• Sitharaman
• BJP
• Modi

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