2021 Union Budget of India February 01, 2021 3359 Views Amendments Proposed TDS Introduced on purchase of goods @ 0.1% on purchases exceeding Rs. 50 lakhs Radical Reforms in Tax Administration Driven by Digitalization Affordable Housing gets shot in the Arm Raising Tax Audit Limit in Certain Cases Where Assessees Carrying on Business CS RELATED PROPOSALS IN BUDGET 2021 BUDGET Highlights KEY HIGHLIGHTS OF UNION BUDGET 2021-22 Summary of the Budget 2021-22 Finance Bill Memorandum Finance Bill Explanatory Notes Budget 2021 at a glance Budget 2021 - Highlights BUDGET 2021-2022 SPEECH OF NIRMALA SITHARAMAN MINISTER OF FINANCE Economic Survey 2020-21 Volume I Economic Survey 2020-21 Volume II BUDGET - Live Commentary Hon'ble Finance Minister Nirmala Sitharaman Presented Union Budget 01:02 PM Finance minister Nirmala Sitharaman concluded her Budget speech 01:01 PM FM Sitharaman announces Rs 2.87 trn outlay for Jal Jeevan mission in Budget 01:00 PM National faceless income tax appellate tribunal to be established 01:00 PM FM announces to amend FRBM act. 01:00 PM Deep sea ocean biodiversity conservation gets some critical funds in the budget 01:00 PM Dairies allocation for RIDF and micro irrigation funds enhanced 01:00 PM Have asked Niti Aayog to list out companies for disinvestments, says FM. 01:00 PM Government to launch Securities Market Code. 01:00 PM GIFT-IFSC to become a financial hub. Will get an Institutional framework to encourage robust Corporate bond market. 01:00 PM Independent Gas Transplant system operator will be set up 01:00 PM Gas pipeline project in Jammu and Kashmir 01:00 PM Propose to set up a central university in Leh to promote higher education in Ladakh. Also announces, more ekalavya residential schools. 12:57 PM A national language translation mission to be introduced. 12:57 PM FM announces raise in customs duty on cotton from 0% to 10%; on raw silk and silk yarn from 10% to 15%. 12:50 PM To support domestic manufacturing in the solar sector, The duty increased for solar inverters from 5% to 20%. 12:50 PM Custom duty exemptions on tunnel boring machines to be withdrawn, says FM. 12:50 PM FM announces, special scheme for tea workers in West Bengal and Assam. 12:50 PM Exempting duty on steel scrap for a specified period. 12:50 PM Cutting duty on copper scrap 2.5% from 5%. 12:50 PM Reducing duties on copper scrap from 5% to 2.5%. 12:50 PM Revoking ADD and CVD on certain steel products. 12:50 PM Nirmala Sitharaman proposes to review more than 400 old exemptions in customs this year. To put into place new customs duty structure by Oct-1, 2021. 12:50 PM A phased manufacturing plan to be introduced for solar cells and panels 12:50 PM Customs duties on gold and silver proposed to be rationalised 12:49 PM Some mobile phone parts to move from zero customs structure to a 2.5% duty rate 12:48 PM Notified infrastructure debt funds to be eligible to raise tax-efficient zero-coupon bonds 12:47 PM Tax forms to come pre-filled with details of capital gains, dividend income and interest income 12:47 PM Late deposit of employee`s contribution to PF by employers will not be allowed as deduction to employer: FM 12:47 PM GST to be made smoother by removing anomalies. 12:46 PM Some of the conditions related to private funding and direct investment in infrastructure relaxed 12:46 PM Finance Minister Nirmala Sitharaman said the government will borrow Rs 80,000 crore in the remaining two months to meet FY21 expenditure. 12:45 PM Extra tax exemption for affordable house loan for another year 12:45 PM Budget 2021 Live updates: The FM proposes extension of tax holiday for start-ups by one more year. 12:43 PM Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014, says FM. 12:43 PM Government to provide tax exemption for relocating funds to IFSC 12:43 PM Aviation gets a boost, Sitharaman gives tax holiday for aircraft leasing business in Gift city 12:40 PM To provide tax exemption for affordable rental housing projects : FM 12:40 PM Govt to extend eligibility of erstwhile tax sop on home loan up to FY22; propose that affordable housing projects can avail tax holiday for one more year 12:40 PM Boost to NRIs in Sitharaman`s Budget: Government to notify rules to eliminate double tax for NRIs on foreign retirement funds 12:38 PM Tax exemption for aircraft leasing companies. 12:38 PM FPI to get deduction of tax on dividend at lower treaty rate. 12:38 PM Advance tax liability on dividend to arise only after declaration. 12:38 PM Govt proposes to increase threshold for tax audit to Rs.10 crore vs Rs. 5crore (for those transacting 95% digitally) 12:38 PM For ease of compliance, dividend payment for REIT and InVIT exempted from tax. 12:37 PM Budget 2021 Live updates: Govt to set-up a faceless dispute resolution mechanism for small taxpayers. 12:37 PM Budget 2021 Live updates: FM reduces tax burden on senior citizens above 75 years. Pensioners over 75 years of age are exempt from filing returns . 12:37 PM The pandemic necessitated deviation from glide path to achieve fiscal deficit target under FRBM Act. 12:36 PM Govt announces monetising more airports 12:36 PM Market borrowing in FY22 seen at 12 lakh crore 12:36 PM FY22 gross expenditure seen at Rs 34.83 lakh crore 12:36 PM Union Budget 2021 live: FY21 fiscal deficit at 9.5% of GDP 12:36 PM India to launch Deep Ocean Mission, with allocation of Rs 4,000 crore over 4 years. 12:36 PM Union Budget 2021 live: Government announces multi-state co-operative for ease of doing business 12:36 PM Social security benefits will be extended to gig and platform workers. 12:33 PM MSME allocation to be doubled. Government to set aside Rs 15,700 crore in FY22. Government also proposes to reduce margin money requirement from 25% to 15% for startups. 12:33 PM Union Budget 2021 live: 69 crore beneficiaries or 86% covered under one-nation, one-ration, says the Finance Minister 12:33 PM Re-opening time limit for direct tax assessment reduced to 3 years from the current 6 years. 12:32 PM Loans to FCI proposed to be discontinued, says Sitharaman 12:31 PM Contingency Fund of India to be increased to Rs 30,000 crore 12:31 PM Will take further steps to ease tax compliance: FM Sitharaman 12:30 PM Budget 2021 LIVE updates: Senior citizens exempted from filing incom-tax returns. The paying bank will deduct the tax on their behalf 12:29 PM Budget 2021 LIVE: 41% devolution of funds to states has been retained 12:28 PM Our tax system should be more efficient and transparent and should not put undue burden on the taxpayer. Finance minister quotes Thiruvalluvar 12:28 PM Budget 2021 LIVE updates: FM begins Part B of her speech 12:28 PM Budget 2021 LIVE updates: FY21 expenditure target revised to Rs 34.50 trillion. Government to approach market for additional Rs 80,000 cr to fund the FY21 fiscal deficit. 12:27 PM Gross borrowing target for FY22 set at Rs 12 trillion 12:27 PM Budget 2021: Fiscal deficit to be contained under 4.5% of GDP by FY26 12:27 PM Bill for the National Commission for Allied Healthcare Professionals to be introduced in Parliament 12:25 PM Rs 1,500 crore earmarked for a scheme to boost digital payments, says Sitharaman 12:19 PM Rs 300 crore granted to the govt of Goa for celebration of 50 years of independence from the Portuguese 12:19 PM Forthcoming census will be the first digital census in the history of India -- Rs 3,768 crore allocated for the purpose, says Nirmala Sitharaman. 12:18 PM Budget 2021 LIVE updates: Functioning of tribunals to be rationalised 12:17 PM Sixth pillar dwells on: Minimum government, maximum governance 12:17 PM Four Indian astronauts being trained in Russia. First unmanned space mission to be launched in Decemebr 2021. 12:17 PM First unmanned space mission to be launched in Decemebr 2021, says FM 12:15 PM A multi seaweed park will be set up in Tamil Nadu, says Nirmala Sitharaman. 12:14 PM Rural infra fund has been increased to Rs 40,000 crore: Budget 2021 12:13 PM 100 new Sainik schools to be set up in partnership with NGOs. 12:13 PM Union Budget 2021 on fourth pillar for revival: Reinvigorating human capital 12:12 PM Minimum wages to apply to all categories of workers. Women to be allowed to work in all shifts, even in night shift, with adequate protection 12:12 PM Minimum wages to apply to all categories of workers, says FM 12:11 PM One nation, one ration card scheme under implementation in 32 states. the four others to be integrated soon. 12:11 PM Portal to be set up for gig workers, construction workers, says FM 12:10 PM Budget 2021 on agriculture sector: 1,000 more mandis to be integrated with e-Nam 12:10 PM SPV to aid timely closure for sick units 12:10 PM Non-core assets with govt not to be a part of Aatmanirbhar, says FM Nirmala Sitharaman 12:10 PM Budget 2021 on combating Climate Change: Hydrogen energy mission for generation using clean resources 12:06 PM Scheme updates : Amount paid to farmers for pulses in FY21 seen at Rs 10,530 crore vs Rs 8,285 crore in FY20 12:06 PM Scheme updates : Amount paid to farmers for paddy in FY21 seen at Rs 1.72 lakh crore Rs vs Rs 1.41 lakh crore in FY20 12:06 PM Scheme updates : Amount paid to farmers for wheat in FY21 was Rs 75,060 crore vs Rs 62,802 crore in FY20 12:06 PM Scheme updates : 1.54 crore farmers benefited from MSP in paddy and wheat in FY21 vs 1.24 crore YoY 12:06 PM Micro irrigation corpus doubled to Rs 10,000 cr. Agriculture infra fund will be made available to APMCs. 12:06 PM Five major fishing harbours to be developed as hubs for economic activity 12:06 PM To increase provision to rural infra development fund to Rs 40,000 crore from Rs 30,000 crore 12:06 PM Budget 2021: Sitharaman dwells on the third pillar for fiscal revival 12:06 PM Budget 2021 on agriculture sector : FM announces enhanced agri credit target to Rs 16.5 trillion for FY22, gives update on welfare schemes. 12:03 PM It will complete the divestments of BPCL, CONCOR and SCI in financial year 2021-22. 12:03 PM Government to privatise 2 PSU banks, one general insurance company in FY22: Nirmala Sitharaman 12:03 PM BPCL, CONCOR, Pawan Hans, Air India divestments to be completed in FY22 12:01 PM Fiscal support in FY22 depends on revenue generation from the success of these programmes. 12:01 PM The government has approved a new public sector enterprises policy, which is intended to drive privatisation. 12:01 PM Some of the big ticket divestments planned last year, like the stake sale in LIC, may conclude this year. 12:01 PM In FY21, the government had budgeted to raise Rs 2.1 lakh crore through divestments but fell short. 12:01 PM Divestment target for FY22 at Rs 1.75 lakh cr, FM says 11:57 AM Allow non-resident Indians to incorporate one-person companies in India 11:57 AM Conversion of one-person company to any other kind, reducing residency limit from 182 days to 120 days 11:57 AM No restriction on paid-up capital and turnover, to incentivise incorporation of one-person companies 11:57 AM The one man show, Government to now allow one-person companies 11:57 AM The Finance Minister proposed to revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalization to not exceeding Rs 50 lakh to not exceeding Rs 2 crore and turnover not exceeding Rs 2 crore to not exceeding Rs 20 crore. 11:57 AM Union Budget 2021 live: Government allots Rs 20,000 crore for bank recapitalisation, as FM emphasizes the need to clean up banks` books 11:57 AM Sitharaman`s announcement of the addition of 100 cities to the City Gas Distribution network 11:57 AM LIC to come up with an IPO in 2021-22, says FM Nirmala Sitharaman 11:57 AM SEBI to be notified as a regulator for gold exchanges, too, says FM Sitharaman 11:55 AM DICGC Act to be moved for amended in this session itself to provide support to depositors of stressed banks . 11:55 AM Decriminalisation under limited liability partnerships to be taken up 11:54 AM Government to amend Insurance Act to allow higher FDI 11:54 AM FDI in Insurance to be raised to 74% from 49%, foreign ownsership allowed 11:49 AM Finance Minister Nirmala Sitharaman proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act 11:49 AM Ujjwala Scheme : An independent gas transport system operator to be set up 11:49 AM Ujjwala Scheme : 100 more districts to be added in the next 3 years for city gas distribution 11:49 AM Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22 11:49 AM The government had pegged the fiscal deficit at 3.5% for FY21 in the last budget before the onset of the Covid-19 crisis. 11:49 AM FY22 fiscal deficit seen at 6.8%. : FM 11:49 AM Over and above this, Rs 2 lakh crore will be provided to states and autonomous bodies to nudge their expenditure. 11:49 AM Rs 44,000 crore under capital expenditure to be given to Department of Economic Affairs in FY22 11:49 AM FY21 capital expenditure seen at Rs 4.39 lakh crore 11:49 AM Budget 2021: Ujjwala scheme, which has benefitted 80 mn households will be expanded to include 10 mn more 11:44 AM Budget 2021 for Power sector: Consumers to be given a choice of more than one distribution company 11:44 AM Budget 2021 for Transport sector: Share of public transport to be enhanced with an outlay of Rs 18,000 cr 11:42 AM 702 km of metro rail already operation; 1,016 km in works, says Sitharaman 11:42 AM Eastern and western dedicated freight corridors to be commissioned by June 2022. 11:42 AM FY22 allocation for railways at Rs 1,10,055 cr 11:40 AM Next lot of airports to be privatized in tier 2 and 3 towns and cities 11:40 AM Indian Railways National Rail Plan for India to prepare a future-ready railway system by 2030, says the FM. 11:40 AM Out of the Rs 1.15 lk cr for Railways, Rs 1.07 lk cr is towards CAPEX 11:40 AM FM`s infra boost: Providing Rs 1.15 lk cr for Railways, privatizing airports 11:36 AM Providing Rs 1.18 trn for Ministry of Roads, of which Rs 1.08 trn will be towards CAPEX, the highest ever 11:36 AM 1,300 km in Assam in the next 3 years 11:36 AM 675 km in West Bengal at a cost of Rs 95,000 cr 11:36 AM 1,100 km in Kerala at investment of Rs 65,000 cr 11:35 AM Rs 1.3 trillion for 3,500 km economic corridors in Tamil Nadu 11:35 AM Highway infra work proposed include building 8,500-km of highways by March 2022. 11:35 AM National Monetisation Pipeline for brownfield projects to be launched. NHAI and PGCIL have sponsored one InvIT each. 11:33 AM Special mechanism to be worked out to nudge states to spend more on infrastructure 11:32 AM Sharp increase in capital expenditure up +34.5% (Vs FY21 BE) at Rs 5.54 lakh crore for FY22. 11:25 AM Rs 7,000 to be transferred to the PGCIL InVIT 11:25 AM Rs 5,000 crore to be transferred to NHAI InVIT 11:25 AM NHAI and PGCIL will sponsor one InVIT each 11:25 AM Government to set-up a Development Finance Institution (DFI), capitalised with Rs 20,000 crore 11:25 AM FM Sitharaman commits Rs 1.97 trillion to the manufacturing sector over 5 years 11:23 AM Mega textile park over and above PLi. Seven parks to be set up in three years 11:23 AM Second pillar for revival focusses on financial capital, infrastructure. 11:23 AM Budget speech 2021 LIVE on Second pillar for revival in 2022: Financial capital, infrastructure 11:22 AM Provided Rs 35,000 crore for Covid-19 vaccines, will ramp up if needed, says FM Sitharaman in Budget speech 11:22 AM Pneumococcal vaccine distribution to be expanded to help save 50,000 lives every year, says Sitharaman 11:22 AM Budget Speech 2021 on Clean air: Rs 2,217 cr for 42 urban centres with million-plus population 11:22 AM Vehicles to undergo fitness tests after 20 yrs for PVs, 15 years for CVs, says FM, announcing a voluntary vehicle scrapping policy. 11:22 AM Rs 1.41 lakh crore for Urban Clean India Mission 11:19 AM Urban Swachh Bharat Mission 2.0 will be rolled out with an outlay of Rs 1.48 trillion over 5 years: FM 11:18 AM Will be spent on primary, secondary and tertiary healthcare, In addition to the National Health Mission. 11:18 AM 17,000 rural and 11,000 urban health and wellness centres to be set up 11:18 AM FM lays out a Rs 64,180 crore spending plan, Aatmanirbhar Health Yojana for healthcare over the next six years 11:16 AM Revival in 2022 rest of five pillars, says Sitharaman 11:15 AM We are on the path of fast implementation are our 13 promises made in Budget 2015-16, says Sitharaman 11:15 AM Atmarnirbhar Bharat is the ambition and goal of India`s 1.3 billion people : FM 11:14 AM Lockdown hurt us in many ways. I bow my head before every citizen for showing endurance, says FM Sitharaman 11:14 AM 2021 is a year of many milestones for our history, says FM Sitharaman 11:13 AM Our govt is fully prepared to facilitate the economy`s reset: FM Sitharaman 11:13 AM This Budget is a digital Budget : FM 11:12 AM Today, data show that India has one of the lowest Covid death rate, says FM 11:12 AM The finance minister quotes Rabindranath Tagore to infuse hope in the midst of pandemic-induced gloom 11:10 AM Today, India has two coronavirus vaccines available: FM 11:09 AM In addition, we presented the equivalent of five mini Budgets last year: FM 11:08 AM The government stretched its resources to provide for the most vulnerable : FM 11:08 AM India poised to lead world in recovery, says FM 11:07 AM The total estimate of all relief measures announced by govt & RBI so far is Rs 27.1 lakh cr (13% of GDP), Finance Minister says. 11:07 AM FM recognises contribution of essential service providers in times of coronavirus 11:05 AM Global economy, which was slowing down, was pushed into uncertainty due to COVID-19. The risk of not having a lockdown was far more, far too high: FM 11:04 AM Preparation of budget was undertaken in an environment like `never before`. : FM 11:02 AM FM Nirmala Sitharaman presents Union Budget 2021-2022