Union Budget 2021:
The Central Government is about to present the Union Budget 2021. And for the first time in history, after independence, the Union Budget is going paperless. Our Finance Minister, Nirmala Sitaraman will be presenting this bill on February 1 under exceptional circumstances. Since the economy is still putting up with the effects of Covid-19, the budget this year is planned against the scope of the recession and will be distributed into two parts.
The budget this year has many things different from the budgets presented in the previous years. Some of them are listed below:
However, the reports confirmed that this year, instead of hard copies, only soft copies will be distributed.
Moreover, there will be no Halwa distribution ceremony during the Union Budget 2021, which traditionally takes place before the printing of papers takes place.
While people this year hold many expectations from the Union Budget amidst this Covid-19 pandemic. With lakhs of them have lost their jobs, the obligation will be to bring much-needed relief to people and business sectors who are struggling to meet their expenses. The budget is expected to some be framed, so as to leave more disposable money at the Consumer’s end.
The main focus of Union Budget 2021 will be on bringing back the jobs by boosting the infrastructure and construction. More investments will be done in the sectors that can bring out more jobs and there will be noteworthy incentives for such higher-employment sectors.
In the urge to recover the economy, Modi Government may also increase disinvestment targets for the year to 2.5 to 3 lakh crores.
Union Budget’s effect on Income Tax: The new tax regimes for Union Budget 2021 are introduced, the budget has come up with more tax slabs combined with different rates of taxes as compared to the previous slab structure. The new policies require an individual who earns between Rs. 5 lakh to Rs. 10 lakh to pay 20% tax on his/her income. While the individuals have an option to choose from between the existing tax regime or the previous one. However, individuals should be informed that the choice of the regime should be made keeping in mind that the option is between availing the benefits of tax (the existing regime) or the low income tax slabs with no exemptions and deductions (the new regime).
While the overall GDP of our country has seen to be consistently delining from past 4 years. In this situation, whatever the new regimes bring, we just hope that these boost the economic condition of our country and bring much relief to the common man.