Union Budget 2021 Latest Updates: As the countdown has started for the Budget 2021 which will be presented by Union Finance Minister Nirmala Sitharaman on February 1, stakeholders of various sectors and economists have presented different suggestions to the government. Some have suggested that the government should focus on export promotion as it was essential to boost domestic manufacturing. However, the general public, the common man and the taxpayers – what do they expect from the Budget 2021? Let’s have a look:Also Read - Budget 2022: Will Mobile Phones, TVs Get Cheaper This Year? Here's What Experts Expect

1) General people want the tax deducted in the foreign country to be treated as income of assessee. As per the Section 198 of the Income-tax Act, 1961, tax deducted at source should be included in the gross total income of the assessee. However, the computation of income is often disputed if taxes have been withheld outside India and the corresponding income is offered to tax in India. Also Read - 65 Per Cent Indians Unhappy With Existing Tax Structure: Survey

2) Taxpayer also want consequential amendment after the abolition of Dividend Distribution Tax (DDT). Section 234C provides for levy of interest in case an assessee has the liability to pay the advance tax but he/she fails to pay the same or the amount paid in each instalment is less than the amount he/she should have paid in such instalments. However, it is provided under the said section that if the shortfall in payment of tax happens on account of underestimating or failure to estimate the accrual of income referred under Section 115BBDA(1), then such shortfall shall be ignored while determining the chargeability of interest. Also Read - Budget 2022: What Does Fintech Sector Expect From Upcoming Budget?

3) Another general expectation is that the capital gain provisions should not contain the reference of any particular year in respect of sovereign gold bonds (SGBs) scheme. As per section 47 of the Income-tax Act, any transfer of SGB by the RBI under the Sovereign Gold Bond Scheme, 2015, by way of redemption, by an assessee being an individual shall not be treated as a transfer for the purpose of capital gain.

4) The key expectation in this Union Budget 2021 should be to prioritise spending and take adequate measures to fill up the gaps created by coronavirus pandemic. Moreover, the expectation of India Inc in the form of government support through corporate tax reforms is widely anticipated.

Top economists last week urged Prime Minister Narendra Modi to aggressively push privatisation of state-owned enterprises, avoid challenging international arbitrations and increase infrastructure investment, saying these were essential to build investor confidence.

India’s GDP is estimated to contract by a record 7.7 per cent during 2020-21 fiscal as the COVID-19 pandemic severely hit the key manufacturing and services segments, as per data released by the National Statistical Office (NSO).

According to the Reserve Bank of India (RBI), India’s economy is projected to contract 7.5 per cent in the current fiscal ending March 31, 2021, while the International Monetary Fund (IMF) and World Bank have estimated the contraction at 10.3 per cent and 9.6 per cent, respectively.