Hi All, Budget View from Team Aera The government of India has put their ambitious and national building plan with today's Budget. They are looking to sheld their defensive image to a growth centric government. We find that the Budget is impressive. Please find the attached first cut review of the Budget. We welcome comments from you as well as ready to provide any more details /clarity on this finance bill 2021 .. Thanks Team Aera

1. Union Budget 2021-22
Detailed Analysis
2021 India Budget - In the middle
of difficult lies opportunity
February 2021

2. Union Budget 2021-22
Team Aera
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This booklet highlights and detailed key proposals put forth by Honourable Finance Minister of India in her Union Budget 2021-22. This booklet is
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Further, this booklet contain only proposals & amendments as given in the Financial Bill 2021, which may be modified before it
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Relevant to
Union Budget 2021-22
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3. Union Budget 2021-22
Editorial
"To hell with circumstances; I create opportunities." Bruce Lee
On 1st February 2021, the Finance Minister, Mrs Nirmala Sitaram presented to the Indian Parliament the Budget for the year 2021. The Budget
focused on the country’s economy recovery from COVID- 19 pandemic, through the extension of the scheme given to pandemic affected business
as well as the extension of the government schemes. Other key issues presented relate to framework for privatisation, disinvestment and asset
monetisation of Private sector units (PSU), Privatisation for two PSU Banks, sustainable development, the environment, technological innovation,
signal to the Global players that India is open, bring frictionless and transparency in the system.
As suggested by FM earlier that it is going to be a mega visionary budget. It was expected that this finance bill would have 2030 vision! A lot was
anticipated based on FM earlier communication and a lot was indexed needed to be done in order to provide the much needed stimulus to the
struggling Economy due to unprecedented pandemic and for vision $ 5 trillions economy. This Finance Bill has fulfilled the expectation and
answered various nation building questions. Time will only tell whether this Bill achieves what it sets out to do as Execution will hold the key for
success.
Surprisingly, there is nothing negative in the Budget as per various news and expectation before the Budget.
One of the key elements in Union Budget 2021 is the intent to kick-start major structural and fundamental reforms for the long term opportunities
for India. With a target to double farm income by 2022, the government has announced multiple measures or action points to strengthen the
agricultural ecosystem in the country. With huge Government capital expenditure in 2021-22, the govt has committed to provide the relief from the
pandemic.
In our opinion, the budget has primarily attempted to strengthen the long term fundamental of the economy by taking steps toward agricultural,
Health , Education, MSME and tax reforms. Significant measures in form Government capital expenditure has been announced to boost the near
team growth momentum in the economy, as expected by participants
As per us, this Budget is a “Transformation, structural nature, grabbing the opportunity and great for national building plan”.Our Honourable FM
has proven above quote of Mr. Bruce Lee as true.
As always , we bring our In-depth Analysis of the key provisions of the Finance Bill 2021 presenting a detailed and incisive dissection.
Hope you find reading this interesting and helpful to have a detailed understanding of the Finance Bill 2021
Team Aera
union.budget@aera.co.in
www.aera.co.in

4. Economy Survey 2020-21
Section 01

5. 01 Economy Survey 2020-21
The Hon’ble Finance Ministry,Nirmala Sitharaman and the Chief Economic Advisor, Krishnamurthy.
V. Subramanian presented the Economic Survey 2020-21 before the Parliament on 29th January
2021.
The economic survey has provided a comprehensive assessment of the Indian Economy for
2020-21 and the outlook for 2021-22. On the whole, the Survey's pitch is that things are looking up
for India. In the backdrop of an unprecedented crises of Covid-19, the year has been challenging
from financial front with shortfall in revenue , increase in welfare expenditure & various supportive
scheme.
The projected growth rate for 2021-22 is 11%. But the economy would still take at least 2 years to
cross FY20 levels. The document also devotes separate chapters to how sovereign rating agencies
treat India and why public health spending must go up. The final chapter is an attempt to devise a
basic necessities index in order to track improvements in access to drinking water, sanitation
facilities, decent housing, among others.
Key Highlights
The State of the Indian Economy
• Things are looking up for India. The projected growth rate for 2021-22 is 11%. The Economy would still take at least 2 years to
cross FY 20 levels.
• Health Sector in particular might receive major attention of the Government
• India’s GDP is estimated to grow by -7.7% in FY 21 , Agriculture has remained clock growth of 3.4% while contact based services,
manufacturing & construction has been hardest hit industry.
• Government consumption & net exports have given relief from failing growth
• A resilient V-shaped recovery in the economy is bringing back the growth and it is reflected in various indicators like GST
collection, power utilisation , steel and cement consumption
• Factors which will continue to drive the recovery in the economy include
✦ Mega vaccination drive
✦ Hopes of a robust recovery in the service sector, consumption and investment.

6. 01 Economy Survey 2020-21
OUR VIEW
The survey forecasts on both Nominal and Real GDP are very optimistic and it will need a substantial
push from Central and state spending instead of expectation from Private Sector. It is expected that
fiscal deficit of 5% for 2021-22 and gross borrowing of 11.7 lacs crores. It needs bold policy
measures , ease of doing business, simplify tax and commitment from the Government for the
support to Business community.
We are not satisfied with the measure by the Government and looking forward for the real push and
commitment from the Government
• There is a deviation from fiscal discipline but this deviation is in temporary in nature.
• The monetary policy by RBI are accommodative and liquidity support
• India’s current account surplus stood at 3.1% in H1-FY21 and is projected at 2% of GDP in FY21, a historic high after 17 years.
This improvement has been primarily on account of strong services exports and sharp contraction in imports.
• India’s policy responses to “once-in-a-century” crisis has been unique and mature. India’s policy response focused on minimizing
losses of human lives and recognised that short term pain of an initial and stringent lockdown would lead to long term gains.An
early and intense lockdown was a win-win strategy to save lives and preserve livelihoods
• It argues that India’s sovereign credit rating are not reflective of its fundamentals and highlights bias and subjectivity. India despite
being the world’s fifth largest economy has been assigned a sovereign credit ratings which is the lowest rung of investment grade
-BBB-/Baa3.
• Healthcare is required to take the centre stage in the Government policy. The country’s healthcare infrastructure needs to be made
agile, health care access needs to be provided in remote areas and the emphasis on National Health mission (NHM) needs to be
continued, public healthcare spending should be increased from 1% to 2.5-3%
• The forbearance which was announced by the RBI helped borrowers tide over temporary hardships.Yet, continuation of this even
after financial recuperation has prompted unintended result as banks window dressing their books and misallocating credit.In
request to get a more clear image of the financial framework resource quality, a resource quality audit should be directed. The
legitimate foundation for the recuperation of advances should be fortified.
• There is need for policy reform . There is over regulation of policy. It is suggested to simplify regulation and self regulation is
required. There should be transparency in policy and regulation.

7. Budget 2021 - At a glance
Section 02

8. 02 Government Inflow and Outflow 2020-21
Source
of
Fund
-2020-2
1
Utilisati
on
of
Fund
-2020-2
1

9. 02 Government Receipts and Expenditure
BE - Budget Estimates :: RE - Revised Estimates

10. C
02 2021- 22 Budget - 6 Pillars

11. Direct Tax
Section 03
• Individual Taxation
• Reducing Disputes and
Simplifying Settlement
• Non-resident Taxation
• Incentivisng Digital
• Procedural
Note : Unless otherwise specified, Direct tax proposals will be effective from Assessment Year 2022-23
Highlights
1) No change in tax slab
2) Proposal for simplification of various
processes
3) Attraction of Foreign investment for
infrastructure
4) Ease of filing returns
5) Extension for Startup exemption

12. 03 Direct Tax
RELEF TO SENIOR CITIZEN
Exemption from filing Tax Returns
for senior citizen over 75 years and
having only pension & interest
income, tax to be deducted by
paying bank 139(9)
REDUCING DISPUTES AND
SIMPLIFYING SETTLEMENT
Time limit for re-opening case
reduced to 3 from 6 years (no
change in serious tax evasion case
upto 10 years) 149(1)
Dispute Resolution committee for
small taxpayer
National faceless Income tax
Appellate Tribunal centre
RELIEF TO NRI
Handle issues faced by NRI in their
account for have better double
taxation
INCREASE IN TAX AUDIT LIMIT
Limit of turnover of tax audit
increased to Rs 10 crores from Rs 5
crores for entities carrying out 95%
transaction digitally (44AB)
RELIEF FOR DIVIDEND
Dividend payment to REIT/Invit
exempt from TDS
Deduction of tax on dividend
income at lower treaty rate for
Foreign Portfolio investors
SUPPORTING “HOUSING FOR
ALL”
Additional deduction of interest
upto Rs 1.5 lacs for loan taken for
affordable house extended till
31st March 2022 (80EEA)
Tax holiday extension for one
more year till 31st March 2022 for
affordable housing project ( 80-
IBA)
TAX INCENTIVES TO IFSC IN GIFT
CITY
Tax holiday for capital gain from
Incomes of aircraft leasing leasing
companies (80LA)
Tax incentive for relocating foreign
funds in the IFSC( 10(23FF)
Tax exemption to investment
divine of foreign banks located in
IFSC(80LA)
PRE FILING OF RETURNS
Details of capital gains from listed
securities, dividend income,
interest from banks etc to be pre-
filled in returns
LABOUR WELFARE
Late deposit of Provident fund ,
Superannuation of employee’s
contribution by the employer not
to be allowed as deduction to the
employer (36(1)
RELIEF TO SMALL CHARITABLE
TRUST
Exemption limit of Annual Receipt
increased from 1 crore to Rs 5
crores(10(23C)(iiiad)
START- UPS EXEMPTION
Eligibility for tax holiday claim for
start-ups extended till 31st Mar
2022 80(IAC)
Capital Gain Exemption for
investment in start-ups extended
till 31st 2022 (54GB)

13. Indirect Tax
Section 04
Customs
Highlight
• Outdated exemptions eliminated. More to be
done
• Promoting domestic manufacturing and helping
India into global value chain.
• Change in custom duty for Iron & steel, Mobile
part, Textiles, Chemicals Gold& Silvers,
Renewable Energy, Capital Equipments &
Agriculture products
• Ease of compliance and procedure
Goods and Services Tax
Highlight
• GST Audit by the specified professional is not
required. Self assessment is sufficient.

14. 04 Goods and Services Tax (GST)
Applicability of Audit and Auditor’s certificate under 35(5)
Section 35(5), every registered person whose turnover during a financial year exceeds the
prescribed limit shall get accounts audited by Chartered Accountant or a Cost accountant and shall
submit a copy of the audited annual account, the reconciliation statement under sub-section2 of
Section 44 and other documents in such form and manner as may be prescribed
Abolition of Section 35(5)
Finance Bill 2021 has proposed to abolish section 35(5) of the Act and now no need for audit by
Chartered Accountant or a Cost accountant
Key Proposal
Impact
Now reconciliation statement under sub-section 2 of Section 44 with self certified by tax payer is sufficient

15. 04 Custom Act
Key Proposal
Legislative changes
1) 80 outdated exempting already eliminated.
2) 400 more exemptions may be review by 31st Oct 2021
3) Any new custom duty exemptions to have validity upto 31st March following two years from its issue date.
4) A faceless, Paperless & Contactless customs measures
Custom Duty rate change
Some changes in custom duty
S.No Description of Goods Old rate Proposed rate
1 Parts of Charges and sub-parts of mobiles Exemption 2.5%
2 Some parts of mobile Nil 2.5%
3 Semis, flat and long products of non-alloy, alloy and stainless steels Range from 10% - 15% 7.5%
4 Steel scraps 2.5% Nil
5 Copper Scraps 5% 2.5%
6 Basic customs duty on caprolactam, nylon chips & nylon fibre and yarn 10% 5%
7 Chemicals - Naptha 7.5% 2.5%
8 Gold and Silver 12.5% 10%
9 Renewable Energy - Solar Investors 5% 20%
10 Renewable Energy- Solar Lanterns 5% 15%
11 Capital Equipments- Tunnel Boring Machine 5% 7.5%

16. Other Important Regulatory
Section 05
• Agriculture Infrastructure and Development Cess
• One person Companies(OPC)

17. 05 Agriculture Infrastructure & Development Cess (AIDC)
AIDC on import of certain items
An AIDC has been proposed on import of specified goods. To ensure the imposition of cess does not lead to additional burden on
the consumer, the Basic custom duty has been lowered on those items.
Impact of AIDC on the commodity
It is proposed to have cess on various commodity ranging from apple, crude palm oil to chana, wine etc. BCD has been lowered on
those commodity to avoid any burden on the customer
AIDC on Petrol and Diesel
An AIDC has been proposed on Petrol and Diesel. To ensure the imposition of cess does not lead to additional burden on the
consumer, the Excise duty has been lowered on those items.
Impact
It is proposed to have cess on Petrol and Diesel. Excise duty has been lowered on those commodity to avoid any burden on the
customer

18. 05 One person companies (OPC)
Keys proposal
• No restriction on paid-up capital and turnover
• Conversion of ope-person company to any other legal entity
• Reduces residency limit from 182 days to 120 days
• Allow non-resident Indians to incorporate one-person company
Impact of those proposal
• To incentivise incorporation of one-person companies
• The budget proposal is tax efficient for all those individuals who pay taxes
as high as 42%.

19. Sector Impact
Section 06

20. 06 Sector Views
Name of the Sector Overall outcome Details
Agriculture Positive • Consider as one of the pillar for Budget 2021
• Assure price of 1.5 times of the cost of production
• Increase in credit flow to $16.5 lakh crores
• Operation Green scheme has extended to 22 perishable goods
• Agriculture infrastructure fund to APMC for infrastructure
development
• Development of modern fisheries harbours at five places
Automobiles/Ancilliaries Very Positive • Voluntary scrapping policy for personal vehicle more than 20
years and commercial more than 15 years
• 51 lacs Lmv are more than 20 years and 17 lacs Hmv are more
than 15 years
• Huge demand creation with the implementation of scrapping
policy
Banks Very Positive • Major thrust to boost Economy will help for credit demand
generation
• Privatisation of PSU banks
Cement Positive • Government has major thrust for Infrastructure development
and Housing as major demand driver
• Significant Budget for demand for multi years
Consumer Discretionary Neutral • Nothing for this sector in the Budget
Education Positive • Consider as one of the pillar for Budget 2021
•
Housing Finance Company Positive • Housing for All is one of the major push by the Government
• Extension of deduction of Affordable Housing Interest .
Healthcare Neutral • Consider as one of the pillar for Budget 2021
Insurance Positive • To increase in permissible FDI limit from 49% to 74%
• Allow foreign ownership with control subject to some restriction

21. 06 Sector Views
Name of the Sector Overall outcome Details
Media Negative • One of the most impacted sector in COVID-19
• No relief in the Budget may bad for the sector
Metals and Mining Neutral • Nothing for this sector in the Budget
NBFCs Positive • Major thrust to boost Economy will help for credit demand
generation
Oil & Gas Neutral • Nothing for this sector in the Budget except ADIC which is
neutral in nature
Real Estate Positive
• Housing for All is one of the major push by the Government
• Extension of deduction of Affordable Housing.
Telco Netural • Nothing for this sector in the Budget
Tourism Negative • One of the most impacted sector in COVID-19
• No relief in the Budget may bad for the sector

22. Union Budget 2021
Team Aera
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