Budget 2021: Compulsory need to Adapt and

The two most relevant points in budget for personal investments are

  1. Interest income from contribution to PF above ₹2.5Lakhs being subjected to Tax and Cash Allowance in lieu of LTC being tax exempted.

  2. Only a premium of up to ₹2.5Lakhs in ULIP’s exempted from Tax.

Other Key highlights of the Budget are

Healthcare Expenditure saw a massive jump of 137% to ₹2.23 lakh crores.

Infrastructure An outlay of ₹5.54 lakh crores, 34.5% more than the budget estimate for FY2020-21.

Fiscal Deficit For the current FY is being pegged at 9.5% of the GDP and for the FY2021-22 the deficit is being estimated at 6.8% of the GDP.

Banking Asset Reconstruction Company Ltd To be set up to consolidate and take over the existing stressed debt and dispose off the assets to Alternate Investment Funds (AIFs) and other potential investors for eventual value realization.



  1. Interest earned on PF contributions above ₹2.5 lakh per annum to become taxable
  2. Citizens of age 75 years and above having only Pension and Interest income exempted from  filing of IT Returns.

  3. Pre-Filled Returns Details of Capital gains, Dividend Income and Interest income will be pre-filled in the returns
  4. ULIPs Tax exemption allowed only for maturity proceeds of ULIP having annual premium of up to ₹2.5 Lakhs
  5. Reopening of Assessment reduced to 3 years from 6 years.
  6. Constitution of Faceless Dispute Resolution Panel for people with Total Income upto Rs.50 lakh and disputed income of ₹10 lakh.

  7. Tax audit limit to be increased to ₹10 crores from ₹5 crores for those having less than 5% cash transactions
  8. Dividend Tax Dividends will be exempt from TDS. Advance tax liability on dividend income will arise only after declaration or payment of dividend.

  9. The affordable housing additional deduction extended till 31 Mar 22
  10. Vivad Se Viswas Scheme last date of filing extended to 28 Feb 21
  11. The tax holiday for startups has been extended by one more year up to 31 Mar 22

For further details on implications of budget on your savings and why, when, where and why to Invest

and the emerging Investment Opportunities.

Please contact.

Be Smart and Invest Smartly!!

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