“The budget does have some heartening initiatives. The budget proposes to set up an ARC for NPA management. This is a welcome step to resolve the bad debts of the banking sector and give a boost to lending and economic activity.
Indian startups are the pride of the country. Startups will benefit from the extension of benefits for 1 more year included in the previous budget which they were not able to benefit from owning to the onset of the pandemic.
Some compliances and processes for taxation have been eased too. Focus on the health sector, infrastructure, and capital expenditure is the need of the hour.
The icing on the cake would have been some relaxation on income tax slabs and some relaxation on GST which might disappoint the masses but overall I shall call it a healthy budget.”
— Aarti Khanna, founder and CEO, AskCred.com
“The benefits for affordable housing in terms of exemptions is a welcome move and is likely to give this segment a boost. The recapitalization of Public Sector Banks will give a shot in the arm to lending activities and boost expansion in business activities and consumer spending.”
— V Swaminathan, CEO Andromeda & Apnapaisa
“The 2021 budget was different from those in the past not because of what had changed but because of what had stayed the same. It was a welcome surprise that there was no change in the tax slabs, no increases in surcharges and no changes in exemptions and deductions. This is a welcome change and will ensure stability and predictability to the taxpayer.”
— Rishad Manekia, Founder and MD, Kairos Capital Private Limited, a Mumbai-based financial planning firm
This is definitely a good budget – focused on the short-term growth in the right areas without any disruptive taxation in these extraordinary times. One of the best budgets I have seen and could have expected in the current scenario. Execution of the same becomes critical now. Major things I have liked:
- No new major direct taxes including wealth tax, surcharge, and LTCG.
- IT return forms to be pre-filled with interest income & capital gains. Senior citizen, over 75 years of age, exempted from filing returns if only pension & interest income.
- Disinvestment of 10% in LIC itself can take care of all the extra spending by the govt
- Companies having turnover of up to Rs.10 crore and receive at least 95% digitally are no longer required to get their accounts audited.
- Affordable housing incentive extended by one more year and No change in the definition of affordable housing.
- Reduction in reopening of income tax assessment from 6 years to 3 years
The biggest positive is that there are no negatives like taxes on the ultra-rich, no Covid cess, or any tinkering with long with long term capital gains tax. So, you got a budget with no bad news, creating ease of doing business and a focus on growth.
— Sanjeev Govila (Retd), a SEBI Registered Investment Advisor (RIA), and CEO, Hum Fauji Initiatives, a financial planning firm
“The budget for 2021-22 has clearly announced some path-breaking initiatives in the financial sector. The decision to set up a Development Finance Institution, increasing FDI limit in insurance to 74% and setting up of an ARC cum AMC for bad loans along with the decision to privatize a couple of public sector banks were much awaited. These measures will mean higher funding from banks. NBFC sector, which is facing a cash crunch, certainly stands to benefit from it. With Government also laying equal emphasis on rural sector and hence, have increased agriculture lending target to Rs 16.5 lakh crore, NBFCs operating in rural areas will have to play a pivotal role.”
— Deepak Aggarwal, Co-Founder, Moneyboxx Finance Ltd
“The emphasis of the Government in recent years has been to reduce tax litigation. In this year’s budget too, a few steps have been taken in this quest both from an individual and corporate perspective. On an individual front, the relief to senior citizens, who are aged 75 years and above from filing ITR, reduction in time for reopening of Assessments period from 6 years to 3 years, proposal to constitute ‘Dispute Resolution Committee’ for taxable income of Rs 50 lakhs and disputed income 10 lakh and setting up of National Faceless Income Tax Appellate Tribunal Centre are some of the steps which will immensely help individuals.
On the other hand, on the business front, the increase in threshold limit for mandatory tax audit has been increased from Rs 5 crore to Rs 10 crore provided 95% payments are in digital mode is a welcome move. However, of greater significance is the announcement of reviewing over 400 old custom exemptions this year after extensive consultations, and a revised customs duty structure will be in place from October 1. This assumes significance and may help in reducing litigation related to custom duty, wherein more than 10,000 cases are pending.”
— Vivek Jalan, Partner, Tax Connect Advisory
“The Union Budget announced today comes as a structural reset for the Indian economy post the pandemic aftermath. The focus on key pillars- from agriculture to infrastructure to healthcare and digital & financial inclusion is overwhelming. In her budget 3.0, the Hon’ble Finance Minister pointed out that the manufacturing sector has to grow in double digits on a sustained basis for India to touch 5 trillion economy. This demonstrates positive vibes for the sector to further accelerate towards Aatmanirbhar Bharat, thereby, promoting investment and employment opportunities. The provision to launch Urban Swachh Bharat 2.0 Mission of Rs 1.41 lakh crore over 5 years is laudable. It enhances India’s readiness for a healthy nation as well as broadens the business roadmap for various industries, including hygiene and cleaning. Overall, we believe that today’s budget is certain to impetus the country’s GDP in the coming days.”
–Sam Cherian, Founder & Managing Director, Schevaran Laboratories Pvt. Ltd
“PayU is proud to have led the digital payments space in India and welcomes the forward-looking budget promoting this space. We believe that INR 1,500 crore fund will enhance penetration of digital payments, encourage greater acceptance, enable merchants to grow and boost the digital payment space. The FM has addressed critical sectors and the measures are likely to boost the economy.”
— Anirban Mukherjee, CEO, PayU India
“I am quite impressed with the budget though it has several drawbacks but still Modi govt has managed to deliver well. The scrappage policy of vehicles will be boom to the depressing auto sector, this revival was much demanded and needed. And a revolutionary idea of establishing “Gold Exchange” in India which will enable efficiency and ease to the conservative investors of safe haven to get the physical delivery of their investments such as bonds. Overall it is quite impressive with reliefs and some drawbacks.”