Budget 2021: A non-event from a personal finance standpoint
While there were announcements on procedural improvements in the Budget, there are no new tax benefits February 03, 2021 / 11:01 AM IST
Unlike every year’s budget, this edition had very few announcements on the aspects of individual taxation, as far as the investments are concerned. Let s take a look at the areas where it has an impact.
No Change in Income Tax Slab Rates: Yes, there is no change in Income Tax Slab Rates from what they were last year. In terms of tax saving options, also, there is no change in the limits of 80C or other sections.
Why DICGC Act amendment is big news for small depositors
The Indian banking system now has a much better safety net for depositors of failing banks compared to what they had till a year ago. February 04, 2021 / 07:29 AM IST
The collapse of UCBs like Punjab and Maharashtra Cooperative Bank (PMC Bank) has added to the customers’ distrust.
In the 2021 Union Budget, Union Finance Minister Nirmala Sitharaman proposed to amend the Deposit Insurance and Credit Guarantee Corporation Act (DICGC). This is aimed at enabling depositors of troubled banks to access their money through DICGC route even if banks are temporarily unable to meet the obligations. This announcement assumes significance, particularly for smaller depositors. Earlier, DICGC could be invoked only on liquidation of banks.
The government also decided to set up asset reconstruction company and an asset management company to manage bad debt for scheduled banks, which are expected to reach record levels this year.
Finance Minister Nirmala Sitharaman's third budget in two years was one that registered unprecedented fiscal deficit, an intent that is definitely encouraging for an economy that has been beaten to the ground by a 'once in a century crisis'.