Budget 2021: Insights on Part B of the Budget Speech

New Delhi, 1/2: Finance Minister Nirmala Sitharaman presented the Union Budget in the parliament today. She presented the budget in two parts, A and B. Part A included Agriculture, Textile, Healthcare, Education, Railways and transportation, whereas part B included Taxation.

Finance Minister said “Tax system needs to be transparent” while presenting the budget. Senior citizens above 75 years old are exempted from filing income tax returns, whereas there was no change in the minimum income tax slab. She also proposed to reduce the time limit for reopening of assessment cases to 3 years from 6 years.

The Finance Minister has announced the dispute resolution committee for small taxpayers up to Rs 50 lakh. The dividend payments to REIT and Invit to be exempt from TDS. She announced the relaxations for foreign investments in the infrastructure sector.

In the housing sector, relaxation on loans till March 31, 2022, is proposed. Affordable housing projects can avail a tax holiday of one year till March 31, 2022. Mrs Sitharaman announced additional tax holidays to aircraft leasing companies and those relocating foreign funds to IFSC-GIFT.

In GST reforms, a proposal was made to remove 400 old exemptions. From October 1, 2021, a revised customs duty structure free of distortions will be introduced.

Customs was raised on cotton, raw silk, silk yarn. The customs duty was exempted on tunnel boring machines. Customs on gold and silver will be rationalized.

Duty on copper scrap was reduced from 5% to 2.5%.