What was so good in the Budget21 that the market is reaching new highs?
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Union Budget 2021 was one of the most awaited budgets. People had higher expectations with this one and they were looking for something concrete from the finance minister to provide relief to the pandemic-stricken economy. Nevertheless, Finance Minister had fulfilled most of the expectations in this budget and the economy could take a sigh of relief as it would be soon back to recovery. Now the question arises, what are the major highlights under the budget that made it better.
Here are my key takeaways:
Roads and Railway witnessed a 44%/53% increase to Rs 1.2/1.1 trillion respectively, with an overall CAPEX up to 25% to Rs 5.54 trillion.
Bad bank proposal to rescue PSU banks appears to be very promising.
The government has well thought on not raising tax burden, considering the condition of the economy.
The government has eased the direct tax compliance, especially for senior citizens by eliminating the need to file a return if income is only from pension and interest.
Increased the time limit for re-opening assessment has been reduced to 3 years from the previous 6 years, which will ensure a speedy resolution and processing of ITRs.
Exempted duty on steel scrap till March 2022.
The time limit for claiming 100% tax exemption under section 80IBA for developers for affordable housing has been extended by one year. Also, the additional deduction of interest expense of Rs 1,50,000 for Affordable Housing has been extended by one year.
TDS on dividend announced by SPV to REIT has been eliminated to simplify the compliance.
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