Highlight of Union Budget 2021 – Major Updates on Banking, Income Tax
Finance minister Nirmala Sitharaman is presenting the first Union Budget of the re-elected Modi government today. Stay with Deal4loans for live updates, highlights and analysis of the Union Budget 2020
Rs 1,50,000 crore – disinvestment target for 2019-20
NPAs of commercial banks have reduced by over Rs 1 lakh crore over the last year
To discourage practice of making business payments in cash, I propose to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore a year from a bank account
Record recovery of over Rs 4 lakh crore due to IBC have been effected in the last four years
A new series of coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired were released by the PM on 7th March 2019. These coins will be made available for public use shortly.
Government has smoothly carried out consolidation, reducing the number of PSBs by 8
PSBs are now proposed to be further provided Rs 70,000 crore of capital to boost credit
Government to provide up to Rs1lakh during the finacial year , NBFc SHOULD GETTING FUNDS FROM BANKS, MFs – positive for NBFC
Govt proposes to return the regulation authority over housing finance sector from National Housing Board to the RBI
Every verified woman SHG member having a Jan Dhan account, an overdraft of Rs 5000 will be allowed. One woman in every SHG shall be made eligible for a loan of Rs 1 lakh under MUDRA scheme
Finance Minister Appreciate honest taxpayers of India
Propose to allow an additional tax deduction of Rs 1.5 lakh on interest paid on housing loans for self-occupied house owners. This means those purchasing affordable house will get tax relief up to Rs 3.5 lakh on interest paid.
No Income tax for those who have income upto 5 Lakhs
Due to slew of efforts taken by our government, the direct tax revenue has increased to Rs 11.37 lakh crore from 2013-14 to 2018-19
Aim to simplify tax admin and bring greater transparency
Interchangeability of PAN and Aadhaar card to be allowed for ease and convenience to taxpayers. ITR can be filed without PAN by quoting Aadhaar
Currently, the lower rate of 25% is applicable to firms with annual turnover of Rs 250 crore. I propose to widen this to all companies with annual turnover of up to Rs 400 crore. This will cover 99.3% of all companies
Highlights of Union Budget 2020
- Custom duty on gold increased by 2.5%
- 38% Income Tax for 2 Crore+ Earners
- 42% Income Tax for 5 Crore+ Earners
- Excise duty on Petrol and Diesel increased by 1 rupee.
- Social Stock Exchange under SEBI proposed
- Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme
- NRI investment in Indian capital market is less. I propose to merge the NRI portfolio investment scheme route with FPI route
- 100% FDI will be permitted for insurance intermediary
- “One Nation, One Grid” for power availability to states at affordable rates
- Railway infra would need an investment of Rs 50 lakh crore between 2018 and 2030: FM
- Upfront incentive to be offered on purchase of EVs: FM
- New metro rail projects have been approved during 2018-19. Also, during 2019, 210km of metro lines have been operationalized
- National Common Mobility Card was launched by PM Modi in March this year
- The Gaon (village), Garib (poor) and Kisan (farmers) are at the Centre of all our efforts: FM
- 1.95 crore new houses under housing scheme by 2022
- By 2022, power and LPG will be provided to all households
- 1.25 lakh kilometers of roads will be upgraded
- Govt will work with states to allow farmers to benefit from National Agriculture Market or eNAM
- Under Pradhan Mantri Awas Yojna – Urban, over 80 lakh houses have been sanctioned
- One woman in every SHG will be made available to get Rs 1 lakh as loan under Mudra scheme
- EV – GST will be lowerd to 5%. Additional income tax deduction of Rs. 1.5 lakh rupees on the interest paid on loans for EVs.
- Steps such as these will help double farmers’ income by 2022
- 5 lakh villages are now open-defecation free
- We seek to provide water to all rural households under ‘har ghar jal
- INR 400 crores to help get more universities into the top 200. Currently 3, 2 IIT and IISc,Bangalore. More efforts to help foreign students in Indian universities.
- “A new program – Study in India will focus on bringing foreign students in our higher educational institutions.”
- FAME II scheme aims to provide necessary charging infra and encourage faster adoption of electric vehicles for the common man
- #Budget2019 Propose to consider aadhar cards for NRIs with Indian passports
- 9.6 crore toilets have been constructed since 2014
- Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure
- 35 crore LED bulbs distributed under the Ujjwala scheme, leading to a cost saving of Rs 18,341 crore annually
- Jal ministry to focus on providing adequate drinking water, which is a primary area of concern
- To popularize sports at all levels, National Sports Education Board for development of sportspersons to be set up under @ kheloindia
- Max promoter holding reduced from 75% to 65%
- Govt to start television programme exclusively for startups:
Highlights of Budget 2020 on Banking
Key Highlight Points on Housing Finance
- RBI to take over HFC regulator from NHB.
- Interest deduction of 3.5 Lakh on loan for affordable houses…
- NBFCs to keep getting funding from banks.
