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UNION BUDGET 2021 HIGHLIGHTS

• FM announces new health infra scheme with higher outlay of Rs 61,000 crore

• Rs 35,000 crores have been sanctioned for Covid-19 vaccine

• FY22 capital expenditure up +34.5% (Vs FY21 BE) at Rs 5.54 lakh crore.

• Highway infra work proposed include building 8,500-km of highways by March 2022.

• India to spend Rs 1.1 lakh crore for Railways in FY22

• FM proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act

• FDI limit in insurance increase to 74% from 49%.

• Govt allots Rs 20,000 crore for bank recapitalisation, as FM emphasizes the need to clean up banks’ books

• Divestment target for FY22 at Rs 1.75 lakh cr, FM says

• Government to privatise 2 PSU banks, one general insurance company in FY22

• Government to bring LIC IPO this year

• Government also proposes to reduce margin money requirement from 25% to 15% for start-ups.

• Minimum wages to now apply to all categories of workers. Women to be allowed to work in all categories with adequate protection.

• Rs 1,500 crore for promoting digital mode of payment

• 1st digital census in history of India soon

• FY21 fiscal deficit at 9.5% of GDP; FY22 fiscal deficit target at 6.8% of GDP

• Fiscal deficit will reach below 4.5% by FY26, says Sitharaman.

• Pensioners over 75 years of age are exempt from filing returns.

• Govt to set-up a faceless dispute resolution mechanism for small taxpayers.

• Govt to notify rules to eliminate double tax for NRIs on foreign retirement funds

• Govt to extend eligibility of erstwhile tax sop on home loan up to FY22

• Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014

• FM proposes extension of tax holiday for start-ups by one more year.

• FM proposes to review more than 400 old exemptions in customs this year. To put into place new customs duty structure by Oct-1, 2021.

• Customs duty on Gold and Silver rationalised; Customs duty on certain auto parts increased

• No changes in Income tax slabs.

• Advance tax liability on dividend income to arise only after payment of dividend

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