Finance Minister Smt. Nirmala Sitharaman has introduced ‘Notice of Amendments’ to the Finance Bill, 2021 in the Lok Sabha. More than 100 changes have been proposed to the original Finance Bill, 2021 which was introduced in the Union Budget, 2021.
The budget document reveals that its focus is on good governance, socio-economic development of the people, infrastructure building and generation of employment. 37 % of the earmarked budget is destined to be spent on development and infrastructure projects.
Addressing the webinar, the Prime Minister pointed out that to build a self-reliant India, confidence of the youth of the country is equally important. Confidence comes only when the youth has complete faith in their education and knowledge. Confidence comes only when they realize that their studies are giving them the opportunity to do their work and also the necessary skills. He said that the new National Education Policy has been made with this thinking. He stressed the need to implement all the provisions of the National Education Policy from pre-nursery to PhD quickly and said that the Budget will be of immense help in this regard.
With the insertion of Clause(aa) in Section 16(2) of the CGST Act by the Finance Act, 2021, now it is clear that Input Tax Credit (ITC) claimed on the basis of invoices which are not uploaded by the supplier in his GSTR-1, is required to be reversed and tax/interest/penalty has to be paid under section 73(5) of the CGST Act.
(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).
The Government can collect tax in the name of cess for generating revenue but it shall be earmarked for specific purpose only. Its imp to note that Central cess collections aren’t shared with states under Revenue devolution.
the central government has allowed both houses of parliament not to print budget documents this year. This time a soft copy of the general budget 2021-22 will be made available to the MPs.