The general budget for the financial year 2021-22 will be presented on February 1, 2021. People have high expectations from this budget. If you know the meaning of these 21 words, then you will easily understand the essence of Finance Minister Nirmala Sitharaman's budget speech.
If the government sells its stake in a public sector company to the private sector, it is called disinvestment. This stake is sold by the government through shares. This stake can be sold to an individual or a private company.
When the central government runs short of money, it issues bonds to raise money from the market. It is a kind of debt, which is repaid by the government within a specified time after receiving the money. A bond is also called a certificate of debt.
Balance of payment
Whatever financial transaction is done by the Central Government by the State Governments and the governments present in other countries of the world, it is called the Balance of Payment in the budget language.
A balanced budget is when both government spending and earnings are equal.
When goods arrive in India from another country, the tax that is levied on them is called custom duty. It is also called customs. This fee is levied as soon as goods are landed in India by sea or air.
Excise duty is levied on products that are within the country. It is also called excise duty. This fee is levied on the manufacture and purchase of the product. Currently, there are two major products in the country from which the government earns the most. Petrol, diesel, and alcohol are the best examples of this.
The excess debt taken by the government is called a fiscal deficit. If seen, the fiscal deficit is an additional burden on the domestic debt. This helps the government bridge the gap between income and expenditure.
A direct tax is a tax that is levied on the income of individuals and organizations, irrespective of the source of income. Investment, salary, interest, income tax, corporate tax, etc. are covered under direct tax only.
Gross domestic product i.e. GDP is the total of the total goods produced and services rendered in the country during a financial year.
It is through this bill that the Finance Minister proposes new taxes, etc. with the idea of increasing government income while presenting the general budget. With this, an amendment to the existing tax system is proposed in the Finance Bill. It is implemented only after the approval of Parliament. The government does this every year while presenting the budget.
Short term capital asset
Capital assets held for less than 36 months are called short-term capital assets. On the other hand, in the case of shares, securities, and bonds, the period is 12 months instead of 36 months.
The tax levied on customers while purchasing goods and using services is called an indirect tax. GST, customs duty and excise duty, etc. are covered under indirect tax only.
When a business or professional invests or purchases something for any purpose, the property purchased with this amount is called a capital asset. It can be anything from bonds, stock markets, and raw materials.
The profit arising from the sale or transaction of capital assets is called capital gains.