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PART A- Vision for AtmaNirbhar Bharat

1. Health and Well Being

• Investment in health infrastructure increased substantially
• PM Atma Nirmbhar Swasthya Bharat Yojna will be launched with Rs 64,180 crore spending plan for healthcare over the next six years. This is in addition to the National Health Mission.
• Around 17,000 rural and 11,000 urban health and wellness centres to be set up.
• Integrated public health labs to be set up in each district.
• This will develop capacities of primary, secondary and tertiary healthcare
• Rs 3,500 crore for covid vaccine in 2021-22. Committed to provide more if required.
• Urban Swachh Bharat Mission 2.0 will be rolled out with an outlay of Rs 1.48 trillion over 5 years:
• Voluntary vehicle scrapping policy soon. Under this, Vehicles to undergo test. Personal vehicles - 20 years, Commercial - 15 years

2. Infrastructure and Financial Capital

For a 5 trillion dollar economy, manufacturing has to grow in double digits on a sustained basis

• Textiles - Mega investment textile park scheme will be launched. This will be in addition to the PLI scheme.
• 7 textile parks will be established over 3 years
• Infrastructure needs long term debt financing.
• Lending portfolio of 5 lakh crore for this DFI within 3 years
• National Montetisation Pipeline for brown filed assets will be launched and NHAI and PGCIL to play a key role

3. Highway, Railway Projects

• 500 km of national highway works in Tamil Nadu at an investment of 1.03 lakh crore
• 1100 km in the state of Kerala at an investment of Rs 65000 crore.
• 675 km in West Bengal at a cost of Rs 25,000 crore
• 1.18 lakh crore for Ministry of Road Transport and Highways for Ministry of Roads and Transport.
• Railway has prepared a national rail plan for India 2030. Railways to be complete 100% electrification by 2023.
• Western Dedicated Freight Corridor and Eastern Dedicated Freight Corridor will be commissioned by June 2022.
• Son Nagar-Gomosh section EDFC will be taken up under PPP mode.

4. Urban transport, Metro

• Urban infra - New scheme at a cost of Rs, 8,000 crore for bus transport augmentation in cities.
• 1,016 km of metro lines is under construction in the country.
• Central counterpart funding will be provided to kochi metro phase 2.
• Chennai Metro phase, Bengaluru metro phase 2a and 2b, Nagpur metro phase 2 and Nashik metro will also receive central counterpart funding

5. Energy, Power

• A framework will be put in place to allow consumers to choose between more than one distributor, which is currently a monoly.
• New Power scheme outlay: Rs 3,05,984 crore over 5 years

6. Shipping

• Scheme for promoting flagging of merchant ships: Outlay Rs 1,624 crore over 5 years

7. Petroleum, Natural Gas and Solar Energy:

• Ujjwala Scheme to cover 1 crore more beneficiaries.
• 100 more cities to be covered under city gas supply network

8. Fiscal Deficit

• The governmentt has set a fiscal deficit target of 6.8% for the net financial year. For the current financial year, the government had pegged the fiscal deficit at 3.5% for FY21 in the last budget before the onset of the Covid-19 crisis.

9. Start- Ups

• No restriction on paid-up capital and turnover to continue as a OPC - to incentivise incorporation of one-person companies.
• Conversion of one-person company to any other kind made voluntary. Also reducing residency limit from 182 days to 120 days.
• Allow non-resident Indians to incorporate one-person companies in India.

10. Small Companies

• The FM 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

Union Budget 2021-22   Highlights

11. Public Sector Bank recapitalisation

• Government allots Rs 20,000 crore for bank recapitalisation, as FM emphasizes the need to clean up banks' books
• Government to amend Insurance Act to allow higher FDI
• FDI limit in insurance increase to 74% from 49%.
• FM proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act into rationalized single Securities Market Code.


PART B- Tax Proposals

1. Direct Tax

• Senior citizens - those above 75 years and above who have only pension and interest income need not file returns. Their banks will deduct the tax.
• Reduce Compliance burden, time limit for re-opening of assessment is being reduced to 3 years from current 6 years from the end of relevant assessment year and re- opening up to 10 years is proposed to be allowed only if there is evidence of undisclosed income of Rs 50 lakh or more for a year.
• Dispute resolution committee will be set up for small taxpayers.
• National faceless income tax appellate tribunal will be set up.
• NRI - Rules will be notified to reduce trouble with double taxation.
• Additional deduction of Rs 1.5 lakh will be available for loans taking upto March 31, 2022.
• Eligibility for tax holidays to be extended by one more years.
• Anyone with taxable income up to 50 lakh and disputable income up to 10 lakh to approach committee.
• Dividend payment in REIT and INVIT exempt from TDS.

2. Housing Projects

• Affordable housing projects can also avail tax holiday till march 31, 2022


3. For some employers who don't deposit employees contribution of PF and gratuity in a timely manner - Late deposit will not be allowed as a deduction to the employers.

4. Customs

• Over 400 old exemptions will be reviewed.
• Electronic and mobile phone industry - some parts of phones to move from nil to 2.5% duty.
• Metal recyclers - Duty on scrap to be exempted till march 31, 2022.
• Copper scrap - Duty to reduced from 5% to 2.5%
• Chemicals - Duty on naptha to be reduced to 2.5%.
• Rationalising customs duty on gold and silver.
• Phased manufacturing plan for solar cells.
• Withdraw exemptions on tunnel boring machines.
• Steel screws - Duty from 10% to 15%

NOTE: The above mentioned are the Key Highlight points taken from Finance Minister Budget Speech 2021-22.

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Category Union Budget, Other Articles by - Mrudula M,Co-founder-KaizenEdu