Pre Budget 2021 Expectation: From tax rebate to bigger sops for businesses, here's what's expected from FM Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2021 in Lok Sabha on February 1 at 11 AM.

Union Budget 2021 will go paperless as the Finance Ministry has decided not to print the budget documents amid the COVID-19 pandemic. Touted to be a historic move, it will be for the first time in the history of independent India that the budget 2021 papers will not be printed.

The Budget session of Parliament began on January 29 with the address of President Ram Nath Kovind to the joint sitting of both the Houses. The Budget session of Parliament would conclude on April 8. The Houses will adjourn on February 15 and meet again on March 8.

Stay tuned with us for Live Updates on Union Budget 2021.

01 February 2021

09:01 IST

The government has to play a critical role in pulling the economy out of the trough. While the pandemic is showing signs of being less virulent, a gradual progress in the vaccination programme is fuelling hope for a better future. 

23:35 IST

The domestic steel industry is also seeking a reduction in basic customs duty on key raw materials in the upcoming Budget. The reduction is sought on the items like anthracite coal, metallurgical coke, coking coal, and graphite electrode. "The non-availability of these items in good quality and quantity hinders the growth of the steel industry," said the Confederation of Indian Industry (CII) in its Budget recommendations for the sector.

The basic customs import duty on anthracite coal is 2.5 per cent and the availability of the said item in "good quality" is declining in the country. The steel industry may have to become totally dependent on import of these on a regular basis, the body said while suggesting a reduction in import duty to nil.

For metallurgical coke, CII has suggested to cut the import duty to 2.5 per cent, from 5 per cent at present.

23:33 IST

The salaried class is expecting Finance Minister Nirmala Sitharaman to announce further increase in tax rebate under section 80C and 80D. Notably, in the current consolidated deduction of Rs 1.5 lakh is allowed on all long term and short term serving instruments, including provident fund, pension funds, and equity-linked savings scheme etc.

The salaried class is also expecting that FM could increase the bracket with up to Rs 2 lakh, an increase of Rs 50,000. 

20:43 IST

Also, in the upcoming Budget, the government should look at setting up a special window at the RBI for NBFCs, especially for small and those focused on rural areas, so that their cost of the fund comes down, which will ultimately benefit the economy, Moneyboxx Finance Ltd co-founder Mayur Modi said.

20:33 IST

The finance ministry has received several proposals for re-introduction of infrastructure proposals in the Budget 2021 to provide an additional avenues of savings for the salaried class while at the same time help the government mobiles additional funds to channelise public savings into massive infrastructure development investment. The proposal that is being examined would be akin to the provisions contained in Finance Bill 2010 that allowed an additional deduction of Rs 20,000 for investment in long-term infrastructure bonds for one year (2011-12), though a higher quantum of deductions may also be considered.

20:12 IST

In a set of pre-budget recommendations, the industry, represented by the Aluminium Association of India (AAI), has said that the challenges coming from rising imports, declining domestic market share, and increasing production and logistics costs need to be mitigated soon and in this regard, it is essential that the aluminium sector gets duty protection on imports of finished products and relief in case of raw materials.

19:47 IST

Real estate developers said construction work had not picked up projects due to the liquidity crisis. Navin Raheja, Chairman, Raheja Developers, said the real estate sector is the driver of the economy and a boost to the sector will have a trickle-down impact. "People on average invest their one-third of their savings in real estate. The real estate sector is largely suffering due to over-regulation and incomplete projects that has led to delays and defaults," he said.

19:31 IST

Rendering the ‘industry’ status to the hospitality sector will give a strong push to the sector allowing it to enjoy all the benefits which are issued to the manufacturing industry, in terms of subsidies, credit facilities, power rates, etc, said Anirudh Lakhotia, Director- The Golden Tusk told Zee Media.

19:28 IST

The budget may also have an announcement to create a domestic financial institution to help fund port, road, and power projects with an initial equity capital of around USD 14 billion, according to a Wall Street brokerage report

18:57 IST

There is will be no change for those earning more than Rs 15 lakh per annum and they will continue to pay tax at the current rate of 30 percent. But the new tax rates will be available only to those who forego deductions and exemptions under various sections of the Income Tax Act. 

18:57 IST

FM Sitharaman had announced that the new personal income tax regime for those do not go for any deductions and exemptions, the rate will be 10 percent for those earning between Rs 5 lakh-7.5 lakh per annum against the present rate of 20 percent. Those earning between Rs 7.5 lakh to 10 lakh per year will be able to pay tax at a rate of 15 per cent against the current 20 per cent subject to the condition that they do not opt for any deductions and exemptions under the various sections of Income Tax Act. The new rate for those with between Rs 10 to 12.5 lakh will be 20 per cent against 30 per cent at present while those earning between Rs 12.5 lakh to 15 lakh will pay tax at 25 per cent against 30 per cent.

18:57 IST

In the last Budget 2020, Sitharaman had given an option to the personal income tax-payers to avail of lower rates for those earning up to Rs 15 lakh per year. 

18:52 IST

There has been a widespread demand that the FM should raise income tax slabs at least Rs 3 lakh so that the tax burden for those in the Rs 5 lakh p.a income group could have a little extra at hand. As per media reports, FM Sitharaman may announce something on this track.

18:51 IST

Among several expectations ranging from healthcare to insurance to home loans, it is personal taxation aspects that will cast a major impact in the lives of the middle class people.

18:51 IST

The Pandemic-hit middle class is pinning its hopes on the upcoming Union Budget, that the announcement by Finance Minister Nirmala Sitharaman may help them emerge from the impact of COVID-19 crisis.

18:51 IST

The Question Hour would take place in the Budget session. In the previous session, the Question Hour was not taken up due to paucity of time as both Houses met for four hours each. This time, the Lok Sabha at least, would sit for five hours instead of four every day.