Union Budget 2021

[ladder]

I removed NDTV and many leftshit channels from the subscription.

Same here.

 

[LurkerBaba]

Don't fool yourself. The pandemic affected the economy and any new taxes would have been death blow to many, and in addition it would have given the ruling Govt a hard kick from people. Essentially when the Govt is quick to show its splurge on subsidies, donation diplomacy and what not.

Subsidy on farming is the worst.

• 1lakh crore+ on MSP
• 65k crore on fertilizer subsides
• A sizable amount by state govt for free power/water

Now compare that to the whole education budget which was just 94k crore for the last year. Hell even the defence budget doesn't look that big in comparison to these subsidies

 

[LurkerBaba]

so Even PF is not sacrosanct now ...I am sure they keep lowering this by 25 K odd each year ....

Interest on employee contributions to PF above THIS amount now taxable; check details

Union Finance Minister Nirmala Sitharaman proposed a sharp increase in expenditure on infrastructure, in a bid to pull the economy out of the trough. She also announced the doubling of healthcare spending and raising of the cap on foreign investment in insurance in her Budget for the next fiscal.

zeenews.india.com

For sure their handling is under criticism

https://timesofindia.indiatimes.com...nce-it-came-to-power/articleshow/80616170.cms

Wut ? If you think 2.5lakh employee PF limit is less, then your salary cash component is > 40lakh per annum

 

[Kumata]

Wut ? If you think 2.5lakh employee PF limit is less, then your salary cash component is > 40lakh per annum

Aree Baba ,

I am not affected by this... they are basically trying to tax the interest component on accumulated PF if it's interest being credited is more than 2.5 Lakh in a year.... not contribution of more than 2.5 L a year......Some body contributing to his PF for past 15 odd year should easily qualify for this taxation...even if his yearly take home is <40 Lakh....

Point is bigger - If govt promotes PF as a retirement instrument and have kept it EEE , they shud keep it EEE in true sense and stays off it.. Anyways govt only uses this corpus for it's developmental work...

 

[ezsasa]

Don't fool yourself. The pandemic affected the economy and any new taxes would have been death blow to many, and in addition it would have given the ruling Govt a hard kick from people. Essentially when the Govt is quick to show its splurge on subsidies, donation diplomacy and what not. And in fact, new tax has been added through 'cess'. C.Ex. duty has been reduced for time being to accommodate the cess on fuel. But, it is old trickery of BJP and it will soon increase the C.Ex. duty again to normal.

Also, we hardly had a war. We have a STALEMATE before an actual war. The cost of this hardly deserves even a cess.

Be clear that this Govt could have shown a gesture to middle class as they have given enough cuts to corporates. But obviously middle class doesn't even deserve a gesture from this govt.

Btw, the money and food given to the needy hardly keeps the demand cycle moving as those were used for purchase of necessary items only.

So, yeah, the budget wasn't bad. But, don't try to over-emphasize the magnanimity of Babaji towards middle class.

'Our economic model is about getting the private sector to get more investments', says Principle Economic Adviser, @sanjeevsanyal. Adds, that was the reason why there was no change in the tax structure.

 

[Kumata]

'Our economic model is about getting the private sector to get more investments', says Principle Economic Adviser, @sanjeevsanyal. Adds, that was the reason why there was no change in the tax structure.

Do we have the data on PVT investments ....I mean what he said is correct.... they are giving many benefits to pvt sector and expecting them to invest but in reality is that happening ... My limited understanding on the subject is that Pvt sector is hoarding cash and sitting on cash pile earning interest... nothing else... or we are expecting results too soon.......

i could be wrong as well....

 

[ezsasa]

Do we have the data on PVT investments ....I mean what he said is correct.... they are giving many benefits to pvt sector and expecting them to invest but in reality is that happening ... My limited understanding on the subject is that Pvt sector is hoarding cash and sitting on cash pile earning interest... nothing else... or we are expecting results too soon.......

i could be wrong as well....

You are not wrong, we have to wait another year to see this happening on the ground. investments have happened that's for sure, based on FDI data. products should start rolling out from next year, if investments have come in this year.

 

[Kumata]

You are not wrong, we have to wait another year to see this happening on the ground. investments have happened that's for sure, based on FDI data. products should start rolling out from next year, if investments have come in this year.

FDI is Okie... that's from Outside... govt is giving sops to local industrial houses via cut of corporate taxes etc... My Question was more towards domestic investment by domestic players....

IMO, almost everybody is doing sticker job .. For eg , LLoyd group.. they are importing everything from china and stamping lloyd here and selling ...I had the misfortune of buying their washing machine which went kaput in years time.. opened it myself to see made in china sticker all around

Same for Bajaj.. electrical / electronics specifically....

 

[LurkerBaba]

Aree Baba ,

I am not affected by this... they are basically trying to tax the interest component on accumulated PF if it's interest being credited is more than 2.5 Lakh in a year.... not contribution of more than 2.5 L a year......Some body contributing to his PF for past 15 odd year should easily qualify for this taxation...even if his yearly take home is <40 Lakh....

Point is bigger - If govt promotes PF as a retirement instrument and have kept it EEE , they shud keep it EEE in true sense and stays off it.. Anyways govt only uses this corpus for it's developmental work...

From what I see in the media, its contribution in a year and not interest on total corpus


New tax on interest for people who contribute over Rs 2.5 lakh a year to employees’ PF

New tax on interest for people who contribute over Rs 2.5 lakh a year to employees’ PF

According to govt data, the number of people who contribute more than Rs 2.5 lakh per annum is less than 1% of the total number of contributors in the Employee Provident Fund.

theprint.in

 

[ezsasa]

FDI is Okie... that's from Outside... govt is giving sops to local industrial houses via cut of corporate taxes etc... My Question was more towards domestic investment by domestic players....

IMO, almost everybody is doing sticker job .. For eg , LLoyd group.. they are importing everything from china and stamping lloyd here and selling ...I had the misfortune of buying their washing machine which went kaput in years time.. opened it myself to see made in china sticker all around

Same for Bajaj.. electrical / electronics specifically....

This is why i said, you are not wrong in my earlier post. Govt sops are going into "baniya" pockets, FDI is creating new plants because foreign investor will not allow that money to be swallowed by "baniya".

 

[Leonardo Alves]

self delete.

 

[Hari Sud]

How much is Defence Budget increase over last year....... could somebody convert it to US dollars before anti Indian westerners convert it.

 

[Kumata]

From what I see in the media, its contribution in a year and not interest on total corpus


New tax on interest for people who contribute over Rs 2.5 lakh a year to employees’ PF

New tax on interest for people who contribute over Rs 2.5 lakh a year to employees’ PF

According to govt data, the number of people who contribute more than Rs 2.5 lakh per annum is less than 1% of the total number of contributors in the Employee Provident Fund.

theprint.in

My Bad .. I misread most probably ..I don't know which sector you work in but in IT industry.. 40 L is a pretty normal.. specially around Bangalore / South.. in NCR too this is not unheard of.....

Interest on EPF contribution above Rs 2.5 lakh to be taxable -- what it means for you

Union budget 2021: With this, EPF contribution no longer enjoys the Exempt-Exempt-Exempt (EEE) status, albeit for high income employees

www.businesstoday.in

 

[LurkerBaba]

My Bad .. I misread most probably ..I don't know which sector you work in but in IT industry.. 40 L is a pretty normal.. specially around Bangalore / South.. in NCR too this is not unheard of.....

Interest on EPF contribution above Rs 2.5 lakh to be taxable -- what it means for you

Union budget 2021: With this, EPF contribution no longer enjoys the Exempt-Exempt-Exempt (EEE) status, albeit for high income employees

www.businesstoday.in

Yeah, 40l+ cash and 80l+ Total compensation (stocks) is common in the Tech Product industry. But its definitely not common in the number of people earning this number. You can't claim to be "middle class" if you're earning such amounts of money

 

[Kumata]

Yeah, 40lcash and 80l+ Total compensation (stocks) is common in the Tech Product industry. But its definitely not common in the number of people earning this number. You can't claim to be "middle class" if you're earning such amounts of money

Right.. Agree but I did not like them taxing the Provident fund.. in any form... PF was considered sacrosanct in terms of taxation ..

Anyways PF Is included in miniscule 80 C .. so this gets covered there as well..so either way Person gets taxed outside of this 80C .. only benefit was handsome interest rate ...

 

[LurkerBaba]

Right.. Agree but I did not like them taxing the Provident fund.. in any form... PF was considered sacrosanct in terms of taxation ..

You have a short memory Remember the riots over this ?

Tax on provident fund has led to lot of angst: Jayant Sinha - Times of India

Budget 2016 News: Minister of State for Finance Jayant Sinha defends the government move on EPF taxation but tells TOI that the government will make appropriate modific

timesofindia.indiatimes.com

 

[Kumata]

You have a short memory Remember the riots over this ?

Tax on provident fund has led to lot of angst: Jayant Sinha - Times of India

Budget 2016 News: Minister of State for Finance Jayant Sinha defends the government move on EPF taxation but tells TOI that the government will make appropriate modific

timesofindia.indiatimes.com

Think this was rolled back too... I was browsing other forums and people were giving example of this asking people to protest at all available forums ...shitter / Social media... to foce govt's hand.. think they will manage it this time since farmers are eating away all the limelight...

Makes sense.. nobody listens to sane voice anywhere in democracy....

 

[Mantospace]

No support for ISRO. Seems like just allocated money to keep running its offices.

 

[ObscureMystic]

It was Rs. 13,479 crores in 2020-21. So a marginal increase of Rs. 470 crores which is not bad given the circumstances. Also this year chandrayaan 3 and 1st unmanned mission for gaganyaan will be launched

 

[Maharaj samudragupt]

Which two PSB will be privatised