Let’s take a quick look at some major takeaways from the Union Budget 2021-22
Disinvestment in PSUs
The government aims to raise Rs 1,75,000 crore from selling stake in public sector units.
· On Finance Minister Nirmala Sitharaman’s list of targets for strategic divestment for 2021-22 features Bharat Petroleum Corp (BPCL), Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam limited.
· Besides IDBI Bank, two public sector banks and one general insurance company to be privatised.
· The government plans to float the maiden public issue for Life Insurance Corporation (LIC).
· NITI Aayog has been tasked to work out on the next list of CPSEs to be taken up for strategic disinvestment.
The finance minister presented the vision of a transparent, efficient tax system to promote investments and employment in the country with minimum burden on taxpayers.
· Corporate tax rate slashed to make it among the lowest in the world.
· Burden of taxation on small taxpayers eased by increasing rebates.
· Faceless Assessment and Faceless Appeal introduced.
· Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by the paying bank.
Goodies for Non-Residents
Rules to be notified for removing hardships faced by NRIs regarding their foreign retirement accounts.
Freebies for Digital Economy
Limit of turnover for tax audit increased to Rs 10 crore from Rs 5 crore for entities carrying out 95% transactions digitally.
Relief for Dividend
· Dividend payment to REIT/ InvIT to be exempted from TDS.
· Advance tax liability on dividend income only after declaration/ payment of dividend.
· Deduction of tax on dividend income at lower treaty rate for Foreign Portfolio Investors.
Push for ‘Housing for All’
· Additional deduction of interest up to Rs 1.5 lakh for loan taken to buy an affordable house extended till March 2022.
· Tax holiday for affordable housing projects extended till March 2022.
· Tax exemption allowed for notified affordable rental housing projects.
Ease of Filing Taxes:
Details of capital gains from listed securities, dividend income and interest from banks to be pre-filled in returns.
Relief to Small Trusts
Exemption limit of annual receipt revised from Rs 1 crore to Rs 5 crore for small charitable trusts running schools and hospitals.
· Late deposit of employee’s contribution by the employer not to be allowed as deduction to the employer.
· Eligibility for tax holiday claim for start-ups extended by one more year.
· Capital gains exemption for investment in start-ups extended till March 31, 2022.
With input from PTI