Yesterday our finance Minister Mrs. Nirmala Seetharaman presented the Union Budget for the year 2021-2022, here are some highlights by CA Deepali N Bansal… Deepali N Bansal is a practicing Chartered Accountant since 1999. Following article is a compilation of information available at Govt. Website and professional experts. She tried to cover maximum points which are relevant to general Public in simplified manner… Must read… Dr. Purnima Sharma…)
Union Budget 2021-22 Highlights
✅ *Direct and Indirect Tax*
- Senior Citizens: Reduced Compliance burden. 75 years and above. Proposal not to file ITR, if only pension income and interest income.
- Reduction in time for IT Proceedings: Reopening of Assessments period reduced from 6 years to 3 years except in cases of serious tax evasion cases- where evasion evidence is 50 Lacs or more than reopening within 10 years
- Reducing Litigation for small tax payers – Constitution of Faceless Dispute Resolution Panel for people with Total Income upto Rs.50 lakh and disputed income of Rs.10 lakh U/S 245MA.
- Income Tax Appellate Tribunal to become Faceless – Only electronic communication will be done or with video call.
- Relaxations to NRI: Propose to notify rules for removing hardship for double taxation.
- Tax Audit Limit: Proposal of tax audit increased from 5 Cr. to 10 cr. (Only for 95% digitized payments business)
- Dividend Tax : Dividend will be exempt from TDS. Advance tax liability on dividend income will arise only after declaration or payment of dividend. For Foreign Investors – lower treaty rate benefit will be given.
- Tax Holiday: Propose to include tax holidays for Aircraft leasing companies
- Prefiling of returns: (Salary, Tax payments, TDS etc.) Details of Capital Gains, Dividend Income and Interest income will be pre-filled in the returns
- Small Charitable Trusts: Increased from 1 crore to 5 crores (Compliance limit)
- Late PF Contribution: Late deposit of employee’s contribution by employer will not be allowed as deduction
- Incentive to startup: Tax holiday for Start-Ups extended to 31st March, 2022. Capital Gains exemption on investment in start ups also extended to 31s March, 2022.
- Duties reduced :on various textile, chemicals and other products
- Gold and Silver: Basic Custom Duty reduced
- Agriculture Products: Custom duty increased on cottons, silks, alcohol etc.
- Section 80EEA (AHAD) deduction extended:The affordable housing additional deduction was extended till 31st March 2022. The tax exemption has been granted for affordable rental projects.
NO CHANGE IN INCOME TAX SLAB
NO CHANGE IN EXEMPTION UNDER CHAPTER IX
NO RELIEF TO SALARY PERSON UNDER STANDARD DEDUCTION
✅ MCA, Companies Act, LLP Act*
- Easing Compliance requirements of Small Companies – Threshold increased to Share Capital upto Rs.2 crore and Turnover upto Rs.20 crore will be Small Companies
- Allow One Person Companies (OPC) to grow without any restriction in Share Capital or Turnover. NRIs will be allowed to set-up OPCs. Presence in India of 120 days in a year enough to start an OPC.
- Launching MCA Version 3.0 – E-Scrutiny, E-Adjudication and Compliance management to be simplified.
- Decriminalisation of LLP Act, 2008
- Tribunals to be rationalised
- First digital Budget in the history of India
- Vehicle Scrapping Policy: Vehicle Fitness Test after 20 years in case of Personal vehicle and 15 years in case of commercial vehicles
- 64,180 crores allocated for New Health Schemes
- 35,000 crores allocated for Covid Vaccine
- 7 Mega Textile Investment parks will be launched in 3 years
- 5.54 lakh crore provided for Capital Expenditure
- 1.18 lakh crore for Ministry of Roads
- 1.10 lakh crore allocated to Railways
- Proposal to amend Insurance Act: Proposal to increase FDI from 49% to 74 %.
- Deposit Insurance cover (DICGC Act 1961 to be amended): Easy and time bound access of deposits to help depositors of stress banks.
- Proposal to revive definition of ‘Small Companies’ under Companies Act 2013: Capital less than 2 Cr. and Turnover Less than 20 Cr.
- Disinvestment: IPO of LIC, Announced Disinvestment of Companies will be completed in FY 2021-22
- Agriculture Infrastructure And Development Cess (AIDC) : has been newly imposed on petrol and diesel at Rs.2.5 and Rs.4 per litre respectively.(But no new burden on Consumers)
- Turant Customs :A new initiative called ‘Turant Customs’ will be introduced for faceless, paperless, and contactless customs measures.
(If you wish to get in touch with CA Deepali N Bansal, you can send an e-mail on firstname.lastname@example.org or call on 9873135670)