The recent news about the Union Budget 2021-22 is everywhere. And it seems that everyone is quite happy with this year's union budget. Announced by Smt. Nirmala Sitharaman on Monday, Union Budget talks a lot about entrepreneurship. Lets have a deeper look at what is it that entrepreneurs are focusing on in the Union Budget 2021.
Latest News - Union Budget Live Updates
1 February 2021 - In parliament today, Smt Nirmala Sitharaman, Minister for the Union's Finance & Corporate Affairs, introduced Union Budget 2021–22, which was the first budget of this new decade and during COVID-19 crisis unparalleled. She mentioned that this is an example of 130 crore Indian people who believe in their ability and skills in a vision for AatmaNirbhar Bharat.
Union Budget Key Highlights
- Citizens above 75 years who only have pension income are exempt from ITR.
- INR 35,000 Crore for Covid-19 Vaccine
- INR 35,54 Lakh Crore towards Capital Expenditure in FY22
- Aim to complete 11,000 km of National Highway Infrastructure
- INR 1.10 Lakh Crore outlay for Railways, of which INR 1.7 Lakh Crore is for Capital expenditure
- Startup tax holidays extended to 31 March 2022, by one year
- INR 2,217 Crore for 42 urban centres to tackle problems of Air Pollution
- INR 3.05 Lakh Crore outlay for power sector
- Infusion of INR 20,000 Crore for Public Sector Bank
- Definition of small companies to be revised by raising capital base to INR 2 Crore from current limit of INR 50 Lakh
- INR 18,000 Crore scheme to increase public transport in urban areas
- INR 1,500 Crore for promoting digital mode of payment
- Jal Jeevan Mission gets outlay of INR 2.87 Lakh Crore
What is Union Budget?
The annual Union budget, also known as the annual financial statement, is a statement according to Article 112 of the Indian Constitution of the year of projected government revenue and expenses for that specific year. For the financial year from 1st April to 31st March, the Union budget maintains the government's record of finances. Capital and the income fund for the Union Budget are classified.
The tax budget includes income collections and spending from the state. Two forms of income receipts are provided: tax and non-tax income. Revenue spending is the expense of the government's day-to-day activity and of the numerous facilities given to residents. The budget for capital covers government capital receipts and transfers.
Indian Union Budget 2021-22
In her third budget speech, Finance Minister Nirmala Sitharaman announced several steps to improve start-up and MSME ecosystems, which aimed to accelerate changes in the gameplay to boost growth back in the pre-Covid period and to harness Covid-driven digital winds. The budget proposes an expansion of the eligibility to demand tax vacations for start-ups and an investment capital gains exemption in start-ups until 31 March 2022 to stimulate funds to stimulate start-up investments in the region.
FM Sitharaman suggested amending the concept of budgetary SMEs by rising pay-out capital rates of Rs 50 lakh to Rs 2 crore and Rs 2 crore to Rs 20 crore. The drive for digital payments and the launch of a fintech center reveals the seriousness of the government in digitalizing banking. We hope Indian banks in cooperation with the thriving Fintech ecosystem can take up the feelings and digitize their processes.
Another big problem of the economy is widespread unemployment. As Minister of finance, Mrs. Nirmala Sitharaman is planning to announce her first budget, a positive economic boost, and meaningful action to generate more jobs are desperately required.
Union Budget - Effect on GST
The Finance Minister proposed to review over 400 archaic exemptions this year. It will be conducted through extensive consultations and a revised customs duty structure free of distortions will be in place from October 1. The tax audit limit has been raised from INR 5 crore to INR 10 crore turnover for those having less than 5% cash transactions, which means more businesses will be able to run freely.
What is special about the union budget 2021?
- In order to improve open higher education in Ladakh, the Central University will be built in Leh.
- The residential schools in tribal areas will be designed in 750 Eklavya styles. From Rs 20 crore to Rs 38 crore, the expense for each school will be increased. This is increased to Rs 48 crore for hilly regions.
- The post-matric bursary system will be updated for the benefit of four crore Scheduled Caste students. Rs 35,219 crore is being invested for 6 years, that is, until 2025-26.
- A program introduced in 2016 will be amended by the National Apprentice Training Programme to improve apprenticeship options for young people.
- Apprenticeship Act will cover Rs 3,000 crore, which will provide engineering and diploma graduates with post-education instruction.
Everything Entrepreneur should know about the Union budget 2021
It is projected that 40 percent of the Indian tech startups have to cease operations by the National Software and Service Corporations Association (Nasscom). However, many have seen immense relief in order to conquer the chances that even rise exponentially and are ready for more progress.
Some of them have also entered the Unicorn League, including Unacademy, Nykaa, Postman, Razorpay, and Cars 24. Others such as Nocca, MyLab, Bione, and Redcliffe Life Sciences have been better transferred into biotech, education, and medicine.
- Eliminate all types of tax (direct and indirect) from any startup business founded in India until it earns Rs 500 crore, or 12 years earlier.
- Finance Minister extended tax holidays for start-ups by another year, which would give the start-ups a much-needed post-pandemic boost. This ensures that by another year after 31 March 2022, start-ups will be exempted from all capital gains. You will also be entitled to demand tax holidays for another year.
- Enable investments without burdening questions to withdraw failed start-up investment.
- The Minister of the Department of Finance proposed a plan to change the 1938 Insurance Act by raising the FDI from 49% to 74% for insurers. This will encourage insurance providers to have international ownership and influence in the country with some assurances. This is a promising move that will give the InsurTech startups growth impetus.
- Incentivizing involves drawing up and rising the existing insignificance of domestic support. One option will be to reduce long-term equity capital returns to 10 percent, which would be equal to global buyers.
MSMES & STARTUPS
- 15,700 crore rupees for the MSME market, more than double what they were.
- Encourage one person company (OPC) incorporation to improve startups.
- By raising the capital base to rupees 2 crore out of rupees 50 lakh, the concept of small companies shall be amended.
- Startup tax holidays extended to 31 March 2022, by one year
This was a short Union Budget analysis done by the team and the rest is up for interpretation. The budgets are to further enhance Sankalp First, Doubling Farmer's income, Solid Infrastructure, Stable India, Good Governance, Youth Opportunities, Education for All, Empowering Women, Inclusive Growth. Make in India a plan to divest two more PSBs and an insurance firm and a host of infrastructure promises to polling-bound states included a number of major announcements. The fiscal surplus is 9.5% of GDP, and in 2021-22 it is forecast at 6.8%. Slabs stay where they are for personal income tax.
What do you mean by Union Budget?
The Union budget is an annual report comprising government receipts and expenses for a fiscal year starting April 1, 2015, to March 31, 2011.
When Union Budget is presented?
On February 1, Union Finance Minister Nirmala Sitharaman introduced the Union Budget 2021 and revised Rs 34.50 lakh crore for FY 2021.
What is Union Budget and Interim Budget?
The interim budget is a budget proposed immediately before the general elections by the central Government. The Union budget is an annual budget submitted to Parliament by the Central Government.
What are the 3 types of Budgets?
The 3 types of Budgets are Union Budget, Interim Budget and Central Budget
Who prepares Union Budget?
The Union Budget is prepared by the Budget Division of Department of Economic Affairs (DEA).
Who presented the general Budget in the parliament?
The Finance Minister presents the budget in the parliament.