The Finance Bill 2021 is passed by the Parliament on March 23, 2021, which aims to bring in result the financial pitch of the central government for the financial year 2021-22.
The Lok Sabha first passed the bill was then presented in the Rajya Sabha, which sent the bill back without consideration. This means the Finance bill was cleared by Parliament. The bill’s channelization in Parliament signifies the conclusion of the budgeting process.
The Lok Sabha of the Parliament making several modifications absolved the bill. Finance Minister N. Sitharaman said that the bill has some alterations in the union budget proposal which were done to boost up the ease of business and obedience burden.
Nirmala Sitharaman added that there will be no transformation in the rate of income tax. Numerous opposition members had highlighted the high petrol and diesel prices during the debate on the bill and said petroleum products should be under the Goods and Services Tax (GST) Council. Finance Bill 2021 imparts a 10-year income-tax release to the National Bank for Financing Infrastructure and Development and a 5-year tax indemnity to private sector development finance organization, which can be expanded by a further five years.
The Finance Bill 2021 said that no exemption shall be offered for the interest income accumulated throughout the previous year in the standard and statutory provident fund to the scope, it relates to the employees over Rs 2.5 lakh in the previous year. Now, the employer to such fund the limit will be Rs 5 lakh instead of Rs 2.5 lakh additional releases to this condition to offer where there is no contribution.
The FM Sitharaman said that the Centre is open to discuss the idea in the GST Council meeting. She said, “The Centre also taxes, and the states tax. If there is this concern about the fuel tax, I honestly think based on today’s discussion – many of the states would be watching this and in the next GST Council if that discussion comes up, I will be glad to have it on the agenda and discuss it”.
