Finance Minister Smt. Nirmala Sitharaman indicated that the government is planning to make some big announcements and said that the Union Budget 2021 is going to be like never before. This budget may be more on Expenditure - High Spending will mean higher growth. Presenting some expectations related to Budget 2021:
1. Health & Hygiene Industry – Hoping for better regulation on the hygiene industry which will attract foreign direct investments, equal access to quality healthcare , Promotion of hygiene products & may reduction in import duties of hygiene products.
2. Optional Tax Regime for Individuals – Last year budget introduced new tax regime for individuals with various tax slabs excluding certain deductions. So Individuals are expecting the same optional tax regime scheme (Either to opt for new or old tax regime) for upcoming year to be continued.
3. Boom Domestic Tourism - Leave Travel Allowance may also allowing benefit for hotel stay too.
4. Definition of Infrastructure Status to Hotel : Lowering Limit of Investment from 200 Crores to 25 Crores & it will make easy for cash flow from bank to Hotels.
5. GST Rate on Room Bookings – May reduced from 18% to 12% which will improve Indian hotels to be competitive and be par with Asian Economies.
6. Insurance Premium Tax Deductions – Maybe Life Insurance and Term Plan Premium should get extra 1 Lakh deduction over Section 80C or Limit increased in Section 80C.
7. Home Loan Principal Repayment – May introduced separate deduction over Section 80C or Limit increased in Section 80C. This will be required as dream home getting costly day by day.
8. Vehicle Scrappage Policy (For Old & Polluting Vehicle) – Scrap your vehicle after certain usage period and you will be incentivise for buying new vehicle. This will boom the automobile industry.
9. Work From Home expense reimbursement by Employer to Employee – Employees may avail tax benefits / deductions on work from home expenses reimbursed like Internet Expenses and others.
10. Waiving Interest Income on Senior Citizen Saving Scheme (SCSS) – May Full tax rebate on such Interest Income on SCSS going to be announced.
11. Section 80TTB related to Interest Income from Deposits by Senior Citizen – May Section 80TTB deduction limit increased from 50K to 1 Lakhs for Senior Citizens.
12. CIBIL Ratings – May exempt for street vendors for taking loans.
13. Boost Defence Equipment’s & Funds – Creation of Fund which will reserved unspent money & not returned to any other funds.This unspent money in the fund will be used for preparing defence equipment on emergence of need.
14. Tax Rates in New Private Hospital Established – Tax rates may reduced from 25% to 15% for emerging needs of Private Hospitals.
15. Consolidation of Public Sector Banks = Right now PSBs reduced from 27 to 12. May be PSBs getting merged and only 4 PSBs exist in India.
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