Important Budget 2021 Announcements

Hey guys, we’re starting this thread to summarize all the important budget announcements with @TataMutualFund.

  • Budget aims to build on Aatmanirbhar Bharat mission amidst changing global dynamics, Six pillars include Health Infra, Physical Infra, Human Capital, Inclusive growth, innovation and Minimum Government - Maximum Governance.

  • Big boost on capital expenditure for FY22. For funding, significant institutional setup planned to execute and monitor monetization of assets owned by PSUs or government undertaking.

  • Three key reforms for Financial Markets: Single securities market code, improve liquidity in Bond markets and increase in FDI limit in the insurance sector to 74%.

  • Big push on privatisation - 2 PSU banks and 1 general insurance company also likely to be privatised. More PSUs to be added to the list of privatisation and land monetisation also on the cards.

  • Budget thrust so far indicates a follow through from the Economic Survey suggestions of having a counter-cyclical fiscal policy for the next 1 year till growth regains the 7% trajectory after FY22.

  • Fiscal deficit of 6.8% in FY22 is higher than expected but in sync with the strategy of counter-cyclical fiscal policy. Five-year target to reduce it to 4.5%.

  • No new cess on personal income tax. Simplification of tax filing and dispute resolution is a positive.

  • Overall, budget has provided for higher government spend without increase in personal and corporate taxes or cess. No changes in capital gains structure is also a positive. Positive for cyclical recovery in earnings at the expense of higher fiscal deficit.

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I think the Audit turnover limit has also increased from 5cr to 10cr for 95 % digital transactions, something very useful for regular day traders…

Do we need to audit for 2 cr or 5 cr. Right now ?

No limit on paid up capital and Turnover for One Person Company ?

So we can now operate OPC without any limit ? Don’t have to convert to Private Limited company.

Does OPC can get alpha membership or become member ?

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Looks like setting up the ground for LIC IPO.


Could you please provide more information on " Tax on PF interest from contribution exceeding 2.5lakhs" Does this includes employer contribution ? VPF?

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Which are these 2 banks?

Not known yet.

@Quicko can you.

probably looking to sell much bigger stake than earlier proposed…??


VPF is not included in tax on PF interest from contribution exceeding INR 2.5 lacs.



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Employer contribution is not included in 2.5 lacs but VPF WILL be. Idea is to limit tax-free status for employee contribution to 2.5 lacs and vpf is also contributions from employees

Impact of Budget on Gold in detail.

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