Union Finance Minister Nirmala Sitharaman on Monday unveiled India's ambitious Budget 2021, offering something to everyone. The government exempted from filing income tax returns the senior citizens above 75 years of age with only pension income. It provided Rs 35,000 crore towards COVID-19 vaccination in the 2021-22 fiscal. The government also proposed an extension of the eligibility for claiming tax holiday and capital gains exemption for investment in startups till March 31, 2022.
Eligibility for claiming tax holiday, capital gains exemption extended
The government proposed an extension of the eligibility for claiming tax holiday and capital gains exemption for investment in startups till March 31, 2022. "In order to incentivize startups in the country, I propose to extend the eligibility for claiming tax holiday for startups by one more year to March 31, 2022," Sitharaman said.
"In order to incentivize funding for the startups, I propose to extend the capital gains exemption for investment in startups by one more year to March 31, 2022," she further said.
Rs 35,000 crore budgeted for COVID-19 vaccination expenditure in FY22
Sitharaman provided Rs 35,000 crore towards COVID-19 vaccination in the 2021-22 fiscal. "I have provided Rs 35,000 crore for COVID-19 vaccine in this year 2021-22. I'm committed to providing further funds if required. The Budget outlay for health and well being is Rs 2.23 lakh crore in 2021-22 as against BE of Rs 94,452 crore and marks an increase of 137 percent," she said.
ITR filing exempted for people above 75 years with only pension income
Senior citizens above 75 years of age with only pension income will now be exempted from filing income tax returns. The bank paying income to them will deduct the necessary tax from their bank account. Under section 80TTB, seniors can claim up to Rs 50,000 interest income received from banks and post offices as a deduction from their income thereby making this type of interest income for senior citizens effectively tax-exempt up to Rs 50,000.
BUDGET SPEECH: FULL TEXT
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