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Expect Budget 2021 to give impetus to economy: Sanjeev Pendharkar

Sanjeev Pendharkar

Sanjeev Pendharkar

The year 2021 is being looked upon as a year of hope – hope for good health, hope for a life free of restrictions, hope for buoyancy in economy. On the economic front, stock markets are also achieving new heights with the expectation of the economy improving and a taxpayer-friendly Budget along with the introduction of two vaccines for Covid-19.

While various economic packages and reforms announced by the government in 2020 have no doubt kept the economy afloat, Budget 2021 is also being looked upon as a watershed event which is expected to lift and give an impetus to the economy.

Some of the expectations of the common man from the Budget 2021 are as follows:

1. Increase in basic income tax exemption limit and investment limit under section 80C

The basic income tax exemption limit needs to be increased from Rs 2.5 lakh to Rs 5 lakh. The immediate expectation is to reduce the tax burden of taxpayers. The Covid-19 pandemic has affected everyone in some way or the other. Increasing the basic exemption limit will provide tax respite to individuals ..

2. Increasing section 80D limit for individuals

With the Covid-19 pandemic hitting hard and medical insurance coverage found to be inadequate for families, deduction for mediclaim coverage for non-senior citizens should be increased from Rs 25,000 to Rs 50,000 and for senior citizens from Rs 50,000 to Rs 75,000.

3. Residential status for FY 2020-21

Due to the pandemic, the government had notified exemption of certain days for determining residency for FY 2019-20 for individuals who were stranded in India on account of the lockdown and who could not travel outside India. For FY 2020-21 also, the government should issue the necessary clarification providing relief for stranded individuals on account of the pandemic.

4. Deduction for remote working set-up

Covid-19 pandemic brought about a paradigm shift in work culture. Work-from-home (WFH) has become a necessity. Budget 2021 should introduce measures which would provide certain tax benefits for employees. For example, a standard deduction of Rs 50,000 from gross income could be provided (over and above the existing standard deduction from salary) to allow for expenditure by employees who are working from home on ergonomic chairs/furniture, computer equipment, data cards, etc.

5. Long-term capital gains on equity shares and equity mutual funds

Long term capital gains from sale of listed equity shares and equity mutual funds is tax-exempt up to Rs 1 lakh. Further, the gain above Rs 1 lakh is subjected to tax at 10% (plus applicable surcharge and cess) without benefit of indexation. The government should look at increasing the exemption limit from Rs 1 lakh to Rs 2 lakhs for retail investors.

6. Deduction for conserving environment

With climate change being inevitable and a hot topic, incentivising use of environment-friendly products such as solar heaters, solar lamps, wind energy, bio-toilets, solar mobile chargers, etc. by individuals and households has also become necessary. Just as the government incentivised purchase of electric vehicles by providing a deduction under section 80EEB of the Act for interest paid up to Rs 1.5 lakh on loans taken, the GOI may consider incentivising the purchase of the above-mentioned environment-friendly products by providing a deduction for interest paid up to Rs 1 lakh on loans taken. This will give a boost to the clean technology industry and encourage innovations.

7. Leave Travel Concession (LTC) Cash Voucher Scheme

Due to the travel restrictions, employees have not been able to avail LTC in the current block period of 2018-2021. Hence, the government introduced the LTC Cash Voucher Scheme as an alternative. The scheme allows cash equivalent to LTC fare and leave encashment to be paid by way of tax-free reimbursement, if the employee opts for this in lieu of one LTC during the block period of 2018 -2021 subject to the below conditions:

? An expenditure is incurred during the period October 12, 2020, to March 31, 2021, for the purchase of goods/services (with GST rate of 12% or more) through digital mode

? The expenditure incurred should be equal to value of leave encashment and thrice the value of the LTC fare

In case the taxpayer spends less than the required amount, the tax exemption will stand reduced proportionately.

The above measures are expected to stimulate consumption and subsequently boost the economy. However, spending three times the value of LTC fare seems high. Therefore, the government may consider reducing the spending required to twice the value of LTC fare. Also, an extension of the scheme for an additional nine months, i.e., up to December 31, 2021 (till the end of the block period of 2018-2021) may be considered.

Budget 2021 Expectations for Ayurveda:

Covid pandemic has forced everyone to do the reality check of the healthcare set up. Coronavirus has also underlined the importance of a strong and proper healthcare system.

Budget 2021 is the perfect time for the Central government to focus on Ayurvedic medicine as the Covid pandemic has made everyone aware of the importance of natural immunity. It has become imperative that some separate budget is assigned to the manufacture, procurement, and marketing of Ayurvedic Medicine.

With an aim to promote new drug discovery in Ayurveda, first-class research facilities are needed to be set up and the government should spend more on research and development in Ayurveda. We are hoping that the Government will provide funds for ayurvedic doctors, practitioners, and scholars to back research and new drug discovery. The government should boost Ayurvedic medicines in line with the Atma Nirbhar Bharat vision of Prime Minister Narendra Modi. In our view, the Goods and Services Tax (GST) should be waived off for products having the license to be sold as Ayurvedic Medicine.

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Anvi, Arav, Shaunak, Anavti emerge as champions at District Chess Championship in Nagpur

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Radhika Dhawad | Nagpur

Chess Association Nagpur had organised Nagpur District Under 9 and Under 17 Open as well as Girls Chess Championship Tournament in association with GH Raisoni Sports and Cultural Foundation and Kalpana Prakash Welfare foundation.

Under the Aegis of Maharashtra Chess Association held on Saturday, May 21 at Shraddha House, the prize distribution function was also held on the same day by Bhushan Shriwas, Secretary, Chess Association Nagpur. Earlier, the tournament was inaugurated by SS Soman (Working President CAN and Member MCA tournament Committee).

Tournament was executed by Chief Arbiter Pravin Thakare who was assisted by Deputy Arbiter Shiva Iyer, Prayas Ambade and Prathamesh Machave.

List of Selected players :

Under-9 Boys

1)  Arav Dhoot

2) Chirag Lahoti

Under-9 Girls

1) Anvi Vinit Hirde

2) Chaudhari Amulyaa

Under-17 Boys

1) Shaunak Badole

2) Dishank Bajaj

Under-17 Girls

1) Avanti Junghare

2) Shraddha Bajaj

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CAMIT delegation meets Devendra Fadnavis, thanks him for support to tenants across Maharashtra

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Nation Next Newsroom | Nagpur

CAMIT delegation during its meeting with Leader of Opposition Devendra Fadnavis

CAMIT delegation during the meeting with Leader of Opposition Devendra Fadnavis

A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by Chairman Mohan Gurnani and President Dr Dipen Agrawal recently met Devendra Fandnavis, Leader of Opposition, Maharashtra Legislative Assembly, to express gratitude for firmly standing with galedharak/tenants of municipal corporations across the state.

Expressing gratitude on behalf of tenants from Maharashtra, Dr Agrawal said that in 2019 injustice was inadvertently done to leasee/tenants of respective municipal corporations across the state. CAMIT had strongly protested the draft rules in 2019. Thereafter, CAMIT has been actively engaging with government and administration at all levels to bring relief to the small and marginal traders from the unilateral exorbitant increase in rent.

Over a period of times, CAMIT team met MP Krupal Tumane, Fadnavis, Transport Minister Anil Parab, Environment Minister Aditya Thackeray, Urban Development Minister Eknath Shinde, Nana Padole (the then speaker of Maharashtra State Legislative Assembly) and others to impress upon them to intervene in the matter so as to do justice with all stake holders.

CAMIT’s patient follow-up without missing any opportunity to highlight the issue before men in power, has borne fruits. In the budget session the house concluded to withdraw the notification dated 13/09/2019 and constitute a committee to review and fix the rent afresh. It was also decided that corporations will collect rent as per old rates with an undertaking from tenants that they shall pay the difference as decided by the committee, added Dr Agrawal.

CAMIT delegation requested Fadnavis to ensure that the authorities immediately issue necessary written guidance/directions to all municipal corporations to put in abeyance coercive action against the tenants who have paid or are ready to pay the rent as per old rates. The delegation also requested him to impress upon government to include minimum five representatives of trade associations across the state in the proposed committee to be constituted to study, review and fix the lease rent.

Fadnavis said that opposition is committed to the cause of traders and any injustice meted out to small and marginal traders who are struggling for their survival will be dealt with very strongly. He also welcomed the announcement in the assembly session by Eknath Shinde in regards to withdrawal of 13th September 2019 GR and fixation of rent of corporation shops around 1-2% of the ready reckoner price.

During the meeting, Hemant Parekh, Rikab Mehta, Mitesh Modi, Sandeep Jain and Mahendra Mehta were also prominently present. CAMIT has also sent letter of gratitude to Chief Minister Uddhav Thackeray and Eknath Shinde for their timely intervention and resolution of the issue.

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CAMIT delegation meets Aditya Thackeray in Nagpur, raise problems faced by Maharashtra traders

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Nation Next Newsroom | Nagpur

CAMIT delegation during its meet with Maharashtra  Cabinet Minister Aditya Thackeray

CAMIT delegation during its meet with Maharashtra Cabinet Minister Aditya Thackeray

A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by Dr Dipen Agrawal President along with MP Krupal Tumane met Maharashtra Cabinet Minister for Tourism Aditya Thackeray and Environment during his two-day maiden visit to Vidarbha in the presence of Nagpur Guardian Minister Dr Nitin Raut, MLA Ashish Jaiswal and MLC Dushyant Chaturvedi.

At the outset, Agrawal welcomed Aditya Thackeray with a floral bouquet and submitted memorandums highlighting the exorbitant hike in rent by corporations and their coercive action , harassment by local body tax department across the state under the garb of assessment and reopening of coaching classes in offline mode.

Wahab Parekh and Sanjay Nabira from NMC Market Federation said that unilateral steep increase in rent by municipal corporations for their bazar samiti properties is ranging between 100 to 1000 times and in some cases more than 1000 times. On failure of tenant to concede to this unilateral decision, authorities are taking coercive steps. This is adversely affecting the small and marginal traders already facing the heat of frequent lockdowns and restrictions due to covid pandemic.

Ashok Ahuja, past president of General Merchant Association, informed Thackeray that the then State Government had published draft regulations for transferring corporation property by lease or otherwise and renewal of lease. More than thousand objections and suggestions were submitted to UDD-2 from all over the state including from CAMIT with a request to give personal hearing in the matter. The administration without giving opportunity of hearing to anyone, notified the Maharashtra Municipal Corporations (Renewal of Lease or Transfer of Immovable Property) Rules, 2019 under notification dated 13/09/2019.

Dr Dipen Agrawal on behalf of galadharek across the state requested Aditya Thackeray to intervene and suspend the notification dated 13-09-2019 and suggested 1) in cases where only land is leased/licensed by Corporation the annual rent should be fixed at 1% of value as per ready reckoner; 2) in cases where shop/otta is leased/licensed by Corporation the annual rent be fixed at the rate of 2% of value of construction plus 1% of value of proportionate land as per ready reckoner; 3) 10% increase in lease rent/license fee every 3rd year; 4) Agreement should be valid for 30 years term; 5) the lease / license should be transferable and transfer fee to be charged equal to one month rent/fee for transfer within blood relation and equal to three months rent/fee for transfer outside blood relation and 6) the agreed new lease rent/license fee to be made applicable prospectively and not retrospectively.

Rajnikant Bondre President Association of Coaching Institute (ACI) and Sarang Upanglawar ICAD said that schools from class 1st to 12th and colleges have been permitted to reopen in offline mode from February 1, 2022 and at the same time coaching classes/institutes are kept close. The exam dates have been announced by education department. The guidance imparted our institutes in form of revision, doubt clearing and one to one interaction with faculty in this last month is crucial for the future for the students. This last month guidance can be effective only in offline mode. Further they highlighted that national level competitive exams like JEE, NEET, CA, CS etc., are also at doorsteps for which coaching classes is theonly option available for students. Hence, they requested to permit coaching classes to operate in off-line mode with immediate effect in the larger interest of future of our state, the students.

Aditya Thackeray and Dr Nitin Raut informed that the matter is expected to be discussed in next cabinet and suitable decision will be taken shortly. They further added that due relief to coaching classes will be extended.

Sanjay K Agrawal Vice President CAMIT and Ashok Sanghvi, President of General Merchant Association, on behalf of traders of Maharashtra expressed their gratitude towards SenaPramukh Uddhav Thackeray for extending his support to traders during their then agitation against Local Body Tax (LBT) and virtually abolishing LBT with effect from August 2015. Though practically LBT was abolished in 2015 but the ghost of LBT is hounding traders now and then, department in routine are passing ex-party (best judgement) orders raising inflated and fictitious tax demands and using them to justify continuance of LBT Department. Records from LBT Appellate Authority will evidence the correctness of our statement. They also informed that LBT Department in various Corporation indulged in issuing back dated assessment orders for previous financial years. The issue requires your attention, intervention and directions for closure of LBT Department in all Municipal Corporations with immediate effect to ensure ease of doing business in the state.

Aditya Thackeray admitted that he has received a mail from CAMIT on this issue and he is in knowing of the issue. He further said that similar representations have been received from other trade associations. He will discuss the issue with Nitin Raut, Energy Minister and KrupalTumane, Member of Parliament, and ensure that the issue is addressed.

Also present during the meeting were Prajakta Verma, Nagpur Divisional Commissioner, Nagpur collector Vimala R and NMC Commissioner Radhakishan B.

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