WHAT BUDGET MEANS FOR Economy, Investors, Markets, Business, Consumers

WHAT BUDGET MEANS FOR…

ECONOMY

The Big fiscal stimulus to support demand and economic recovery Rs 5.54 Lakh crore capital spending and push to infrastructure to help revive investments Bad bank to address NPAs, allowing banks to focus on lending No direct help to stressed sectors could hit recovery, burden banks

INVESTORS & MARKETS

No TDS on dividend payment to REIT/InvIT and lower treaty rates on dividends to FPIs to encourage investments MFs can see bigger inflows as tax rules rejig for ULIPs levels field Higher borrowing could raise interest rates, which in turn may hurt stock markets

BUSINESS

Asset Monetisation and privatization of non-strategic PSUs to create multiple opportunities Further charges in customs duty to make domestic manufacturing more attractive Startups get a year more to claim tax holiday and an additional year of capital gains tax exemption

CONSUMERS

Consumers could see many goods becoming expensive but get no tax relief

MORE SECURE

Deposit Cover Enhanced Deposit insurance cover hiked from Rs 1 lakh to Rs 5 lakh. Depositors will get access to this amount if the bank is unable to fulfill obligations.

HOME-A-LOAN

Boost for Homebuyers eligibility period to claim additional deduction on interest of Rs 1.5 lakh paid for affordable housing loan extended to March 31, 2022.

TAXPAYERS

Relief for taxpayers as past assessment can be opened only for up to three years Difficult to evade tax on capital gains and interest prefilled forms to include details

NO RETURN

Help for Senior Citizens Senior citizens aged 75 or above earning only pension and interest income will no longer have to file income tax returns.

REDUCING TIME TO HALF

Scrutiny Time Limit Cut Time limit for reopening of income tax assessments cut to 3 years

ADVANCE TAX

Only After Dividend paid. Advance tax liability in respect of dividend income will be payable only after deduction or payment of dividend.

PREFILLED DETAILS

With capital gains and dividend income to be prefilled in ITR forms, filing taxes will become a lot easier for many investors

KEY BUDGET TAKEWAYS

I-T exemption for eligible startups extended to April 1, 2022

Exemption on LTCG for investments in startups extended by one year

Removal of threshold for investments in LLPs to give more leeway to startups

Portal to collect info on gig workers for formulating social schemes

Take Out Rs 5 Lakh Even if your bank is under a Moratorium