[01.25 PM]:
Introduction of agricultural infrastructure cess
FM imposes an agricultural infrastructure cess on fuel such as petrol and diesel.
[1.08 PM]:
Positive reaction from the Stock Markets
- Sensex is currently trading at around 47,810 points, up by more than 1500 points (3.18%) from the previous day’s close.
Nifty, on the other hand, is currently trading at around 14,090 points, up by more than 450 points (3.23%) from the previous day’s close.
[01.01 PM]:
Revision in customs duty on mobile phone parts
Exemption of customs duty on parts of mobile phone chargers and sub-parts of mobile phones stands withdrawn.
Customs duty on some parts of mobile phones will be increased to 2.5% from the present nil rate.
[12.48 PM]:
Revision in customs duty on agricultural products
[12.47 PM]:
Revision in customs duty on capital equipment and auto parts
Customs duty exemption for tunnel boring machines have been withdrawn. They will now be taxed at a rate of 7.5% and its parts shall be taxed at 2.5%
Customs duty on certain auto parts have been raised to 15%
[12.45 PM]:
Revision in customs duty on chemicals
[12.44 PM]:
Revision in customs duty for iron and steel
FM proposed a reduction in the customs duty for both Iron and Steel to 7.5%
Customs duty on steel scrap will be exempted up to March 2022.
Customs duty on copper scrap has been reduced from 5% to 2.5%
[12:43 PM]:
Revision of the customs structure
A revised customs structure will be notified by October 2021.
[12.41 PM]:
Tax relief for startups
Tax relief for startups has been extended by 1 more year.
[12:38 PM]:
Extension of tax holiday for loans on affordable homes
FM proposes to extend the eligibility for affordable housing and rental housing over and above what was stated in the July 2019 budget.
Government to extend the eligibility of such home loans up to FY22.
Affordable housing projects can avail the tax holiday for one more year.
[12:35 PM]:
Limit for exemption from tax audit for businesses
[12:31 PM]:
Direct Tax Proposals - Dispute resolution committee for small taxpayers
The Finance Minister proposes to constitute a dispute resolution committee for small taxpayers.
Anyone with a taxable income up to Rs. 50 Lakhs and a disputed income up to Rs. 10 Lakhs can approach the committee.
[12:30 PM]:
Direct Tax Proposals - Reopening of assessments
FM Nirmala Sitharaman proposes a reduction in the time limit for reopening of assessments from 6 years to 3 years.
In cases of serious tax, and only where there is evidence of concealment of income of Rs. 50 Lakhs or more in a year, the time limit for reopening of assessment has been proposed to be 10 years
[12:27 PM]:
Direct Tax Proposals - Relief for senior citizens
Senior citizens who have income only from interest and pension are to be exempt from filing income tax returns
[12:20 PM]:
1 Nation, 1 Ration Card
The '1 Nation 1 Ration Card' plan is under implementation by 32 States & UTs.
The Centre will launch a portal to collect data on migrant workers.
Further, social security benefits will be extended to platform and gig workers.
Minimum wages will apply to all categories of workers.
[12:14 PM]:
Incentives for digitization
FM proposes an outlay of Rs. 1,500 crore for financial incentives to promote digital modes of payment.
[12.12PM]:
Innovation and R&D
The NRF outlay has been proposed at Rs. 50,000 crores over 5 years.
[12.08PM]:
Setting up of new schools
15,000 schools to be qualitatively strengthened as per the National Education Policy (NEP).
100 new Sainik Schools to be set up in partnerships with NGOs.
[12:05 PM]:
MSME allocation
Government to set aside Rs. 15,700 crore in FY22 for MSMEs.
[12.05PM]:
Financial inclusion
Stand-Up India for SC and ST: The FM has proposed a reduction in the margin money from 25% to 15% for startups. This includes loans for allied activities in agriculture.
[12:01 PM]:
Divestment targets for FY22
The government sets the disinvestment target for the year 2021-22 at Rs. 1.75 Lakhs crore
The divestments of BPCL, CONCOR, AIR INDIA and SCI are expected to be completed in the financial year 2021-22.
The IPO of LIC is to be launched in FY22
[11: 55 AM]:
Proposals for one-person companies
No restriction on paid-up capital and turnover for one-person companies
For the conversion of OPCs to any other kind of organization, the residency limit has been reduced from 182 days to 120 days
Non-resident Indians will be allowed to incorporate OPCs in India
[11: 53 AM]:
Measures to strengthen state-owned banks
[11: 48 AM]:
Consolidation of existing financial regulations
Finance Minister Nirmala Sitharaman proposes to consolidate the provisions of the SEBI Act, the Depositories Act, the Securities Contracts Regulation Act, and the Government Securities Act
[11: 46 AM]:
Increase in FDI limit in the insurance sector
FDI limit in the insurance sector to be increased from 49% to 74%.
[11: 45 AM]:
Ujjawala Scheme updates
The Ujjwala Scheme is to be extended to include 1 crore more beneficiaries, with 100 more districts to be added to the scheme in the next 3 years
FM Nirmala Sitharaman announces that an independent gas transport system is to be set up
[11:35 AM]:
Proposed National Highway Infrastructure
FM announces the government’s aim to complete 11,000 kilometers of national highway infrastructure by March 2022.
The following highway works have been proposed:
3,500 km national highways corridor in Tamil Nadu, at an investment of Rs. 1.03 Lakh crore
1,100 km of national highway works in Kerala, at an investment of Rs. 65,000 crore (this includes the 600 km section of the Mumbai-Kanyakumari corridor in Kerala)
675 km of national highways in West Bengal, at an investment of Rs. 25,000 crore
1,300 km of national highways in Assam in the next 3 years
[11:32 AM]:
MARKET: In light of the presentation of Budget 2021, the market witnesses a 811-point gain in Sensex; Nifty climbs above 13,800 points
[11:31 AM]:
Seven textile parks to be set up in 3 years
Seven 'Textile Parks' to be developed in the next 3 years to create world class infrastructure and champions
[11:23 AM]:
Automobile industry: voluntary vehicle scrapping policy
Personal vehicles to undergo fitness tests after 20 years and after 15 years in case of commercial vehicles .
[11:18 AM]:
Health and well-being
[11:18 AM]: To increase the focus on Swachh Bharat and Swasth Bharat, FM Nirmala Sitharaman said the government intends to increase the focus on reduction of single use plastic, air pollution, and segregation of waste.
[11:19 AM]: The Urban Swachh Bharat scheme is to be implemented with an outlay of over Rs 1.4 Lakh crore.
Government to launch Mission Poshan 2.0 and Jal Jeevan Mission Urban. Jal Jeevan Mission Urban to have an outlay of Rs 2.87 Lakh crore.
[11:21 AM]: Of the Rs. 2,23, 846 crore announced as the outlay for health and well-being, of which Rs. 35,000 crore is for the COVID vaccine
The FM announces a new health infra scheme with higher outlay of Rs. 61,000 crore
17,000 rural and 11,000 urban health centres are to be set up to improve health infrastructure in the country
[11:39 AM]: Government introduces the PM Aatmanirbhar Swasth Bharat Yojana, with an outlay of Rs. 64,180 crore spread over a period of six years. This is expected to strengthen the National Centre for Disease Control. The government also intends to set up 15 emergency health centers.
[11:11 AM]:
Part A of Budget 2021 will strengthen the idea of Atma Nirbharta - or Nation First.
It will include six pillars:
Health and wellbeing
Physical and financial capital, and infrastructure
Inclusive development
Reinvigorating Human capital
Innovation and Research & Development (R&D)
Minimum government and maximum governance
[11:07 AM] :
Two or more vaccines are also expected soon.
[11:05 AM]:
The COVID-19 support measures implemented amounted to 13 percent of the GDP, and the total COVID-19 support measures by the government and the RBI amounted to Rs 27.1 Lakh crore
[11:05 AM]:
The Finance Minister referred to the Atma Nirbhar packages, which accelerated the structural reforms in the country.
[11:00 AM]:
Union Budget 2021: Finance Minister Nirmala Sitharaman begins the budget speech, referring to the unprecedented times we witnessed during the past year.
Mr. Anurag Thakur, the Union Minister of State for Finance further asserted that the budget 2021-22 will be at par with people's expectations. Government's constant efforts towards making India a self-reliant nation are likely to reflect with the new budget, making India's economy grow.