Finance Minister Nirmala Sitharaman presented the Union Budget 2021 in the Parliament on February 1, 2021. This year’s budget was crucial as citizens were expecting certain reliefs after the harsh blow faced by the Indian economy due to the worldwide health crisis. However, the presented budget brought no surprises with itself and neither were there any shocks.
Women Investors also has their eyes glued on the Union Budget 2021 to fulfill their wants, alas, nothing dynamic happened in that aspect as well.
Looking at the silver lining, the Indian equity market gained most on a Budget Day ever since 1997. The Standard and Poor’s (S&P) BSE Sensex ended 5 percent higher at 48,600 points. On the other hand, the National Stock Exchange (NSE) Nifty 50 index garnered 4.7 percent to end at 14,281 points. The indices attained more than 6 percent each in 1997.
The Budget Day rally brought in some temporary delay to investors who had witnessed a short bear run. The one’s who were least affected by these movements were the long-term investors.
Speaking of the things that remained unchanged include- Personal Taxation, Capital Gains Taxes, and Tax for higher-income groups.
However, the Union Budget 2021 presented by Finance Minister is an encouragement for the entrepreneurs. Ms. Sitharaman extended the tax holiday for startups till March 2022. It will give a necessary boost to the new-age economy as more women are taking the route of entrepreneurship.
Apart from the extension of the tax holiday, Nirmala Sitharaman also announced the capital gain exemption on investments in startups till March 2022. This has encouraged investors to invest in startups.
Even the senior citizens have rejoiced after the announcement of Union Budget 2021. A recently conducted research has shown that 90 percent of women will have to manage on their own at some point in their lives. These women typically ended up with smaller retirement corpuses than their male counterparts.
The benefits introduced for senior citizens above the age of 75 have been welcomed with joy. As the majority of the people above the ages of 75 have to depend on their children for basic necessities or medical treatments as their pensions don’t meet their needs.
To curb this, the Finance Minister has proposed that the senior citizens above the age of 75 earning only pension and interest income will not be required to file an income tax.
The Union Budget 2021 has lessened the friction of tax filing. It has also deducted interest on affordable housing, and the reduction in customs duties on domestic gold prices have brightened the investments in the precious yellow metal.