What Budget 2021 means for taxpayers, investors and consumers
From bringing tax parity between ULIPs and mutual funds to taking away traditional tax saving avenues of the well off, Budget 2021 aims to strike a balance Moneycontrol PF Team February 02, 2021 / 10:18 AM IST
Budget 2021 has touched a broad canvas of people. Here are the key takeaways for the investor, taxpayer, depositors and common consumers.
For taxpayers
Senior citizens benefit
There is good news for senior citizens. For those above the age of 75, filing income-tax returns is not required, effective financial year 2021-22. But there is a small caveat. Those who earn income from pension and interest alone are exempt. But if you have an income from capital gains, investments in direct equities or even mutual funds, then you have to file your income-tax returns as usual.
Budget unveils changes in customs duties to promote domestic manufacturing
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Last Updated: Feb 02, 2021, 07:58 AM IST
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Synopsis
Rejig was focussed on electronic and mobile, iron and steel, chemicals, auto parts, renewable energy, textiles, products manufactured by MSMEs and agri products to encourage local production.
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Some experts flagged that increase in customs duty on certain iron and steel products may adversely affect the real estate and infrastructure sector.
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The Budget 2021-22 has unveiled a significant rejig in basic customs duties to promote domestic manufacturing and help India become part of the global value chain. Any new customs duty exemption will have validity up to March 31 following two years from the date of its issue, the budget has said, making it clear that any exemption or protection to domestic industry cannot continue endlessly.
Budget 2021: Customs duty hike to make ACs, mobile phones, spandex expensive but gold, silver, nylon get cheaper
Air conditioners and refrigerators could get expensive by 2.5 percent in the short term because the customs duty on its key component compressors has been hiked to 15 percent. February 02, 2021 / 10:35 AM IST
Duty on shrimp feed in increased to 15% from 5%. Customs duty on cotton raised to 10% from nil. The new Customs Duty structure will be put in place by October 1, 2021.
Imported products such as compressors for refrigerators and air conditioners (ACs), raw silk, spandex fibre, LED lamps, solar lanterns, mobile phones and power banks are set to cost more as Finance Minister Nirmala Sitharaman proposed an increase in the customs duty on a range of items in her Budget 2021 speech.
Opinion | How GST e-invoicing will reduce the government s compliance burden
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Small traders and businesses struggled to issue invoices and battled with the new software, with some forced to provide handwritten invoices to customers. Photo: Bloomberg
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Mahesh Jaising,
Prakash Kumar
The move is expected to push the large fragmented MSME sector to adopt transformative technology, which in turn will drive the economy faster. It could also make companies malleable and adaptable to newer ways of doing business
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E-invoicing is an opportunity for digital transformation, one of the tenets of the government’s Digital India campaign. The new system of government-verified invoice brings with it numerous benefits, for both the government and taxpayers and helps amplify the ease of doing business.