A budget is a financial plan for a specified period say Year in general. The Government of India i.e., Ministry of Finance after consultation with all the other ministries prepares the annual budget. The budget will be generally presented by the Finance Minister on the first day of February in Parliament. The proposed budget will come into effect from April 1st of the respective year.
Overall, Budget 2021 may focus on efforts to keep more money in the hands of the people to the spur demand. In other words, critical changes could be the rationalisation GST rates, and increase in Income Tax standard deduction.
List of expectations / recommendations for the Indian union budget of FY 2021-22 were originally published on Jan 24th 2021 @ Indian Budget 2021 | Pre-Budget Expectations
More emphasis on Infrastructure spending, raised customs duty to create jobs. No major changes to Taxes (Income Tax & GST)
As expected by Team EZTax.in before the budget .. Budget 2021 has focussed to increase the importance for self-reliance in manufacturing, infrastructure, domestic service sector, and restrictions on imports by removing the exemptions on customs duty on some and adding additional duty on others. The theme of the budget is to increase the prospects in job creation and real assets in the society.
Kick started the reforms in Insurance sector, allocated biggest budget ever to health care due to COVID-19 pandemic, though uncomfortable, allocated a massive budget towards infrastructure spending by borrowing from the markets. Removed the tax audit requirement for most of the SME sector whose turnover up to 10 crores. Promotion of Digital Currency etc.
What are we missing ? Rationalisation in GST slab rates to promote some and discourage import oriented goods and/or services. Expectation on giving larger incentives for MSME sector who are desperately need of cash to re-engage with their businesses.
Top three observations from the analysis were
Pictorial analysis on New Vs Old Personal Income Tax Regime