Budget 2021: Union Finance Minister Nirmala Sitharaman presented the General Budget 2021-22 in the Lok Sabha on Monday. The government’s focus in the budget was on health, education and employment. To revive the economy, the government has imposed cess on many things. There is no tampering with the income tax exemption limit in the budget. Due to Corona epidemic, the highest expenditure on this budget has been spent on health services.
The elderly will no longer have to pay income tax
Finance Minister Nirmala Sitharaman has made a big announcement about income tax in the budget. The Finance Minister said that such elderly people above the age of 75 years will not have to pay income tax, which is dependent on the pension and interest received from the deposit. At the same time, the elderly, whose income is from any other source other than interest on pension and deposits, will have to file income tax returns.
LIC’s IPO will come in next financial year
The initial public offering (IPO) of Life Insurance Corporation (LIC) will come in the next financial year starting from April 1. The government has already started the process of IPO of LIC. Finance Minister Nirmala Sitharaman said in the 2021-22 budget speech that in 2021-22 we will also bring an IPO of LIC, for which I am bringing necessary amendments in this session. At present, the government holds a full 100 percent stake in LIC. It is likely that LIC will be the largest listed company in the country with a valuation of Rs 8-10 lakh crore in terms of market capitalization.
Insurance guarantee on deposits up to five lakh rupees in banks
The government has proposed to amend the DICGC Act. This will protect insurance on the capital of depositors of banks in crisis up to five lakh rupees. The government has proposed to amend the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, to increase the insurance protection on deposits to five times to five lakh rupees. The Finance Minister said that this step will provide relief to the depositors of those banks, which are in crisis in recent times.
Tax on interest received on deposits of more than 2.5 lakh rupees in PF year
Interest on the contribution of more than 2.5 lakh rupees in the employees’ provident fund will now be taxed. This system will be applicable from April 1. The purpose of this proposal of the budget is to impose taxes on employees who are getting high salaries in the Employees Provident Fund (EPF). Finance Minister Nirmala Sitharaman said that the purpose of EPF is welfare of employees and any person whose earning is less than Rs 2 lakh monthly, they will not be affected by this budget proposal.
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