Highlights of Union Budget 2021
Honourable Union Finance Minister Mrs. Nirmala Sitarama, presented the Budget 2021 today in Lok Sabha. Given the current time of pandemic it’s termed as a very practical, rational, and progressive budget. And this is the first Budget of the decade that leaves direct taxes unchanged, some of the key highlights of the budget with respect to direct and indirect taxes for you.
- Relief to senior citizens of Age 75 Years or above from filing return of income, for Incomes from only Pension & Interest Income. The paying banks will deduct tax from such Incomes.
- Time limit for Re-Opening of Assessments is reduced to 3 years from 6 years. Only in serious cases where concealment of Income is 50 Lakhs or more, the time limit will be 10 years.
- Setting up of Dispute Resolution Committee for the benefit of small taxpayers having Taxable Income upto Rs.50Lakh and disputed Income upto Rs.10lakh.
- ITAT to go faceless. Establishment of National Faceless Income Tax Appellate Tribunal Centre.
- Relaxation in provisions of double taxation to enable ease of claiming relief of taxes paid by NRIs.
- Tax Audit limit in case of 95% digital transactions increased to 10 Cr from existing 5 Cr.
- Dividend payment to REIT and INVIT to be exempt from TDS.
- The additional Deduction upto Rs. 1.5 Lakh on Interest paid on Home Loan (Sec 80EEA) to be available for loans taken upto 31.03.2022. Affordable housing projects can avail tax holiday till 31.03.2022.
- Pre-filling of ITR – Capital gain transactions from Listed Securities, Dividend Income, Interest Income from banks shall also be prefilled.
- Relaxation in compliance for small Charitable Trusts running educational and medical institutions with receipts upto Rs.5 Cr.
- Late deposit of employee contribution by employers to labour welfare funds not to be allowed as a deduction to the employer.
- Tax holiday for start-ups to be available till 31.03.2022.
- Finance Minister proposes to review 400 old exemptions through extensive consultations this year, after which a revised customs duty structure will be introduced.
- Customs duty on copper, textile, gold, and silver rationalized.
- Raise in customs duty on solar inverters from 5% to 20% and solar lanterns from 5% to 15%.
- Withdrawal of exemption on import of leather as they are domestically produced.