Union Budget 2021-22 Expectations for Health: The year 2020 will generally be remembered for the onslaught of Coronavirus and the detrimental effects of the hugely contagious illness. While we are however to recover totally from the Covid pandemic, the Narendra Modi government is all set to present Budget 2021 in February. Experts are expecting a significant push for the healthcare sector in the upcoming Union Budget from the Central government. Industry body ASSOCHAM has proposed that in Budget 2021, Finance Minister Nirmala Sitharaman will have to concentrate on delivering incentives to tackle any other “unforeseen circumstances” due to the Covid pandemic apart from a significant push for the general healthcare sector.
“In Budget 2021, tt is important to provide incentives and tax deductions to those who are investing their money in invention or conducting research towards a cure of Covid-19 and also to combat any other unforeseen circumstances due to such pandemic (such as a shortfall in basic drugs),” ASSOCHAM mentioned in its proposals to FM Nirmala Sitharaman.
“We are expecting a big push from the Finance Minister Nirmala Sitharaman for the entire healthcare sector in the 2021-22 Budget. In our comprehensive pre-Budget memorandum, we have submitted how expenditure on development and the related aspects of vaccine manufacture, distribution, and the entire medical chain should be liberally given tax incentives,” ASSOCHAM Secretary General Deepak Sood mentioned.
In its Budget 2021 memorandum to the Finance Ministry, ASSOCHAM stated that for the objective of section 35 of the Income Tax Act, “scientific research” need to consist of any study connected to Covid-19. “To encourage the taxpayers to develop a cure/vaccine against Covid-19 and to cater to the requirement for other basic drugs/any other generic medicines, a special deduction of 200 per cent of the amount expended for research including developing antidotes, any medications/drugs and vaccinations should be introduced,” ASSOCHAM’s Budget 2021 Memorandum mentioned.
In its proposals for Budget 2021, ASSOCHAM mentioned a 200 per cent deduction be also supplied to the donors (such as non-residents) contributing to any Indian institutions undertaking the vaccination activities. Besides, equivalent deductions be permitted for the expenditure (such as capital expenditure not getting expenditure in the nature of expense of any land or creating) by corporations for undertaking such activities.
Ahead of Budget 2021, ASSOCHAM stated that allowance of the a single-time advantage of deduction be supplied to the corporations opting for the decrease tax price below section 115BAA of the Act, at least for a minimum period of two monetary years, the presentation stated. It has mentioned presently Section 35 supplies for one hundred per cent deduction of expenditure incurred on scientific study.