presented on February 1. President Ram Nath Kovind will address a joint sitting of both the Houses of Parliament on January 29. The Cabinet Committee on Parliamentary Affairs (CCPA) also recommended that the budget session be held from January 29 to February 15. The second part of the budget session will be held from March 8 to April 8. On January 29, The Economic Survey 2020-21 was tabled in Parliament. The survey pegged India's real Gross Domestic Product (GDP) growth at 11 percent in FY22, and said the economy is witnessing a V-shaped recovery after being hurt by COVID-19 pandemic.
COVID-19 and its spread have left a devastating trail of destruction across the economic landscape, blowing into smithereens the very framework of orthodox fiscal policy planning. The lockdowns and the prolonged restrictions have forced many a company to shut or curtail operations, lowering the government's tax collections. Gross domestic product (GDP)—the total value of goods and services produced in the country—fell 23.9 percent in April-June 2020, and then again by 7.5 percent in July-September.
India has now slipped into a technical recession, which takes place when real or inflation-adjusted GDP contracts in two successive quarters. From being toasted as an engine for global growth with the status of the world's fastest-growing major economy, India's GDP has fallen for two successive quarters. The bigger question now is: how long will the impact last?
Expectations are running high on the Budget 2021-22 for "big-bang measures." The Union Budget may just be the right occasion to be a little more courageous and to press the foot on the accelerator.
Budget 2021: Here's what the health insurance industry wants
In the upcoming budget, insurers demand enhancing the tax rebate under Section 80D from the current value of Rs 25,000 for an individual with dependent wife and kids to Rs 50,000. Currently, if a 35-year-old individual buys a family floater health insurance policy to cover self, spouse and 2 kids with a sum insured of Rs 15 Lakh (the minimum required for a family of four), the annual premium comes to Rs 26,000-28,000. When buying this plan, while the policyholder may save tax on Rs 25,000, the insured will have to pay tax on Rs 3,000. Click here to read full article
January 31, 2021 / 10:08 PM IST
If Budget expectations aren’t met, short-term correction in market is likely: Umesh Mehta of Samco Group
As the government looks to boost productive spending, the Budget is expected to fuel economic productivity, job growth, and support those who were hit by the pandemic the hardest. With these themes in mind, infra and realty are expected to see some much-needed support from the government in the form of favourable policies and lower taxes. To ensure cheaper credit, the Budget should also aim to give support to banks to promote them to continue lending, which will thereby support both industries and individuals to recover strongly. Read full interview
January 31, 2021 / 09:46 PM IST
Cabinet meeting to be held at 10:15 am tomorrow ahead of the Budget presentation.
Delhi: Cabinet meeting to be held at 10:15 am tomorrow in Parliament, ahead of the presentation of Union Budget 2021-22.
GST revenue collection for January almost touches Rs 1.20 lakh crore
✅GST Revenue collection for January 2021 almost touches ₹1.20 lakh crore ✅Revenues for month of January 2021 are 8% higher than GST revenues in same month last year ✅GST revenues during January 2021 are the highest since introduction of GST Read more➡️ https://t.co/kKpPlK0i4Xpic.twitter.com/TG0hQW9oGp
What is the biggest Budget gift FM Niramala Sitharaman can offer to PSBs?
PSBs, which are owned by government and control about 60 percent of the assets of the banking system, are in need of urgent capital infusion for three reasons. One, to meet the mandatory reserve requirements 2. Provide for likely losses from stressed assets. 3. Kick-start the credit cycle as and when the loan demand revives. Read more
January 31, 2021 / 08:54 PM IST
Budget session to conclude on February 13
The Budget session of the Rajya Sabha has been rescheduled and will conclude on February 13 instead of February 15. The decision was taken at a meeting of Rajya Sabha Chairman M Venkaiah Naidu with the floor leaders of all the parties of the upper house.
January 31, 2021 / 08:49 PM IST
Budget 2021: Another cess coming? Taxpayers are bearing a heavy burden
Will she or won’t she? That’s the big question on taxes on the minds of corporate executives and high net-worth individuals across India. Taxpayers are anticipating with dread that finance minister Nirmala Sitharaman will announce a Covid cess or surcharge on income taxes in the Union Budget for 2021-22 to raise resources for a national rollout of the vaccine. Read more
January 31, 2021 / 08:02 PM IST
Budget 2021: Five money-saving announcements to watch out for in FM’s speech
With the rise in expenses and axing of income due to economic mayhem, individual taxpayers are looking for relief on the tax front. Since major deductions for both expenses and investments – some mandatory investments such as provident fund – are set in Section 80C, experts say that there is a need to enhance the Section 80C limit. Taxation experts are anticipating an increase in Section 80 C limit to Rs 3 lakh from the existing limit of Rs 1.5 lakh, last changed in. Read more
It is important to make the playing field a fair one. Here are some areas that women want to see change in: wage parity, ownership of physical assets, access to easy credit for vocational training, and so on.
We have moved beyond the fundamental levels of solving a problem and a differential tax-system may no longer be the answer considering not only could that be patronising, but also introduce issues such as women being given low pay packages considering low taxation.
January 31, 2021 / 06:57 PM IST
Budget 2021 | Key terms you should know to understand the Budget better
On February 1, Finance Minister Nirmala Sitharaman will present the Union Budget for 2021-2022. Understanding the Budget is a tough process as it involves complex terms. Some of the important terms are explained here to help you decode the forthcoming Budget speech. Read more
January 31, 2021 / 06:14 PM IST
What the common man wants from Budget 2021
-The tax structure was tweaked a bit last year by introducing a new system (without exemptions) and keeping the old one too. To put some money back in the hands of tax-payers, increasing the basic income tax exemption limit to Rs 5 lakh (which is currently at Rs 2.5 lakh) would be a good move.
-It’s time to increase the limit of Section 80C. Currently, this stands at Rs 1.5 lakh per year. And since this was last revised several years ago, a revision now is long overdue. The problem is that there are several available options within this section and, hence, the limit easily gets exhausted for most salaried individuals. Increasing the limit to, say, Rs 2.5 to Rs 3 lakh will be a good start. Or, maybe, just link the Section 80C limit to an individual’s income levels. That way, those who earn more will have higher 80C limits. Read More
January 31, 2021 / 05:17 PM IST
Budget 2021 | Street looking for credible borrowing plan, measures to revive stressed sectors
The year 2020 was one of many unknowns and as we supposedly sail through the pandemic, the post-vaccine economies will have new hope. While the economic recovery has been sharp, the underlying fragilities can not be ignored. The fiscal temperament in the year of repair and reset will be crucial to watch out for, the cues of which will be very well extended by finance minister Nirmala Sitharaman on February 1, 2021. We expect a fiscal deficit of 7 percent in FY21 but will be on a lookout for a credible glide path ahead. READ FULL ARTICLE