No Major Relief to GST Sector: Key Highlights of Union Budget 2021
Direct Tax (Income Tax) and Indirect Tax (Customs) Reforms:
(1.) ITR filing exemption to citizens aged 75 years and above (only if income from pension and interest).
(2.) New period for re-opening of assessment for transparent tax system : Reopening of assessment period reduced from 6 years to 3 years except in the cases where tax evasion is 50 lakh or more (re-opening of assessment period is 10 years in these cases).
(3.) Constitution of Dispute Resolution Committee (for taxpayers having taxable income of 50 lakh and above and disputed income is 10 lakh).
(4.) Income Tax Appellate Tribunal will be faceless.
(5.) Relaxation for NRIs: Double taxation will be removed.
(6.) Tax Audit Limit: Tax audit limit increased from 5 crore to 10 crore (if digital transactions are equals to 95%).
(7.) Relief on advance tax liability on dividend income.
(8.) Tax holidays for aircraft leasing companies.
(9.) Capital gain from listed securities, dividend income, interest from post office will be auto-populated in ITRs.
(10.) Late contribution by employer to PF etc. will not be allowed as deduction to employee.
(11.) Tax holiday exemption for one more year to startups.
(12.) Duties reduced on: Chemical, textile, copper scrap, gold and silver.
(13.) Effect on agriculture products: Customs duty increased on cottons, silks, alcohol etc.
Allocation of Funds:
(1.) 64,180 crores allocated for New Health Schemes.
(2.) 35,000 crores allocated for Covid Vaccine.
(3.) 7 Mega Textile Investment parks will be launched in 3 years.
(4.) 5.54 lakh crore provided for Capital Expenditure.
(5.) 1.18 lakh crore for Ministry of Roads.
(6.) 1.10 lakh crore allocated to Railways.
(7.) Proposal to amend Insurance Act. Proposal to increase FDI from 49% to 74%.
(8.) Proposal to revive definition of ‘Small Companies’ under Companies Act 2013. Capital less than 2 crore and Turnover Less than 20 crore.
(9.) IPO of LIC, Announced Disinvestment of Companies will be completed in FY 2021-22.
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