Budget 2021: Key Highlights

Today was one of the most anticipated day in our country as it was the day of the Budget Session in our Parliament. Today’s budget holds a lot more importance as it comes under unprecedented circumstances. The whole nation waited to see what’s in Red Tablet Case for them.

Finance Minister Nirmala Sitharaman presented The Union Budget 2021 in parliament today. It was the first time a paperless digital budget was presented. The budget was read out from the Make In India Tablet. It was a bid to promote the need for Paperless Digital India in the changing environment.

Know Your Legal’s team has decided to list the key highlights of Budget 2021 for you.

The proposals in the Union Budget are as follows :

• The Tax Slabs for both individuals and corporates remain the same.

• The senior citizens above 75 years of age whose income is only Pension or Interest will not be required to fill the Tax Returns.

• Reopening Assessment which was 6 years for Tax Evasions has been reduced to 3 years. However, this has been changed only for non-serious tax evasion cases. In case of serious tax evasions, the assessments may be reopened for the previous 10 years.

• The tax audit limit has been increased to 10% for those who carry out their 95% of transactions via digital means.

• A proposal for Asset Monetization was also announced today. The National monetization pipeline will be launched by Government and a dashboard to track progress & provide visibility to investors will also be created.

• An Amendment in Insurance Act was also proposed to raise the FDI in Insurance from 49% to 74%.

• An amendment in the Companies Act was also proposed to Change the Definition of Small Companies, Increasing small companies threshold for capitalization to not exceeding ₹ 50 lakh to not exceeding ₹ 2 crores and turnover not exceeding ₹ 2 crores to not exceeding ₹ 20 crores.

• Following the decriminalizing of procedural and technical compoundable offenses under the Companies Act, 2013, which is now complete, Finance Minister also announced the Decriminalization of Limited Liability Partnership ACT,2008.

• Finance Minister also proposed to consolidate the provisions of the SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956, and Government Securities Act, 2007 into a rationalized single Securities Markets Code.

• An Amount of ₹ 35,000 crores were allocated for the COVID19 Vaccine in 2021-22, with the commitment to provide more funds, if required.

• Finance Minister also proposed to reduce the minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 from the existing level of 50 lakhs to 20 lakhs.

• Finance Minister also allocated ₹ 4.78 lakh crore to the defense budget for 2021-22, its highest in 15 years.