Updated Jan 22, 2021 | 15:10 IST
The government has to make huge investments at a time when there is already pressure on revenue collection. So any relaxation on income tax front is unlikely. Representational image
New Delhi: Finance Minister Nirmala Sitharaman will present the Union Budget for financial year 2021-22 on February 1.The upcoming Budget is going to be the most difficult one for the FM Sitharaman as she needs to come out with plans to revive the pandemic-hit economy, which is expected to contract 7.7% in the current financial year.
While the governmenr is expected to increase allocation towards public spending and infrastructure it also needs to fund schemes like Atmanirbhar Bharat Abhiyan and Production-Linked Incentive (PLI), which were announced last year as part of its plan to boost the domestic manufacturing sector and reduce dependence on imports.
Budget 2021: Govt can provide tax deduction for employees working from home, says PwC
Following the outbreak of Covid pandemic early last year, many companies adopted a work from home policy for their employees
PTI | January 22, 2021 | Updated 07:51 IST
Pwc India senior tax partner Rahul Garg said such a measure would be reasonably equitable because if businesses were to incur that expense, that would have been a deductible expenditure in their books
The government could look at providing deductions for expenses incurred by salaried employees while working from home in the upcoming Budget as it looks to boost demand, consulting firm PwC India said on Thursday. Addressing a pre-budget session, Pwc India senior tax partner Rahul Garg said demand creation is particularly focussed on money being given or left in the hands of the individuals.
About 50% industry respondents feel Budget will revive their business, says Deloitte survey
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Last Updated: Jan 22, 2021, 05:26 PM IST
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Synopsis
The online Deloitte survey titled - Would Union Budget 2021 accelerate the industry s recovery? - posed a set of about 12 questions, including on economic revival and ease of doing business, to senior professionals across industries.
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NEW DELHI: About 50 per cent of the industry respondents feel that the upcoming Union Budget will revive their business, while a vast majority are optimistic about economic recovery and demand growth, a Deloitte survey said on Friday. While some respondents also feel that raising the tax exemption limit for individuals will boost private consumption and investment, about 50 per cent highlighted demand revival as one of the major working areas.
Synopsis
With fintech and digital payments becoming more accepted, the government could announce some support for creating a digital payments framework, which will offer MSMEs far easier access to credit and financial services.
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The government has understood the impact of the lockdown on this sector. However, it is time for more help than temporary sops.
Every year, the Union Budget is keenly followed by the industry which sends their wish list to the Finance Minister sector by sector, seeking sops and stimulus. This year is no different, except the extent of assistance that will be required as industries struggle to put one of the worst years behind it.
The government has given approval to drug firms includingAurobindo Pharma and Karnataka Antibiotics & Pharmaceuticals under the PLI scheme for promotion of domestic manufacturing of critical bulk drugs. The Production Linked Incentive (PLI) scheme aims at promotion of manufacturing of critical key starting materials (KSMs)/drug intermediates and APIs in the country. The setting up of plants under the scheme will lead to total committed investment of Rs 3,761 crore by the companies and employment generation for around 3,825 people,the Ministry of Chemicals and Fertilizers said in a statement. The applications of Aurobindo Pharma (through Lyfius Pharma) have been approved for setting up plants for the production ofPenicillin G, and 7-ACA, with committed production capacity of15,000 MT and2,000 MT, respectively. The committed investment for Penicillin G is Rs1,392 crore, and for 7-ACA isRs 813 crore, it added.