Finance Minister of India, Nirmala Sitharaman, represented Union Budget 2021-2022. “Tax holidays for startups extended by one year, till 31st March 2022,” said Sitharaman in the Parliament.
The Top six pillars of The Union Budget 2021-22 are:
- Health and well-being
- Physical and financial capital and infrastructure
- Inclusive development for aspirational India reinvigorating human capital
- Innovation and R&D
- Minimum government
- Maximum governance
The budget comes with a long list of changes but here I am sharing a few most important highlights, that you must know.
Sitharaman added the following statements in the parliament related to the budget.
“Definition of small companies under Companies Act 2013 to be revised. Companies with paid-up capital up to Rs. 2 crores and turnover up to Rs. 20 crore will fall under small companies, benefiting more than 2 lakh companies in compliance required,”.
“To incentivize incorporation of one-person companies, such companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time,”.
Infrastructure and Healthcare are the main points to keep an eye-upon in the 2021-2022 budget.
Ranawat, the CEO and founder of WoodenStreet said that “Also, just like it was predicted, Startups were given importance in this budget as well. The tax-exempt on the revenue, as well as investments, have been increased by one more year which will be beneficial for the startup growth in the country,”.
There is an emphasis on the privatization of Big Government firms like IOCL, LIC, and many more. It has been said that this move of making these firms government to private will increase economy and employment as well.
Some other key points:
- Two public-sector banks and one state-owned general insurance company to be lined up for disinvestment. FDI in insurance to be hiked to 74% from 49% now. LIC IPO.
- No income tax relief, No increase in the standard deduction, no raise in the tax slabs.
- The Health funds raise to 137% in 2021-22. It has increased to Rs 2,23,846 crore as compared to Rs. 94,452 crore in 2020-21.
- A find of 35000 crores is saved for the COVID-19 vaccine.
- Asset Reconstruction Company for bad banks.
- Announced four major highway projects:
- Tamil Nadu (3,500 km – Rs 1.03 lakh crore)
- Kerala (1,100 km – Rs 65,000 crore)
- West Bengal (675 km – Rs 25,000 crore)
- Assam (1,300 km – Rs 34,000 crore)
- Financial deficit estimated at 6.8 percent of GDP in 2021-22(was 9.5% in 2020-21). It will be brought down to 4.5 percent of GDP by 2025-26.