Highlights of Union Budget 2021-22 – MCA, Companies Act, LLP Act

by | Feb 1, 2021 | Income Tax Update

  • 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.
  • Decriminalization of LLP Act, 2008
  • Tribunals to be rationalized

Highlights of Union Budget 2021-22 – Direct and Indirect Tax

by | Feb 1, 2021 | Income Tax Update

  • 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
  • Proposal to constitute ‘Dispute Resolution Committee’. (Taxable income 50 lakhs and disputed income 10 lakh).
  • National Faceless Income Tax Appellate Tribunal Centre
  • 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)
  • Propose to provide relief on advance tax liability on dividend income.
  • Propose to include tax holidays for Aircraft leasing companies
  • Prefiling of returns (Salary, Tax payments, TDS etc.)  Details of Capital gains from listed Securities, dividend income, etc. will be prefilled
  • Late deposit of employee’s contribution by employer will not be allowed as deduction
  • Duties reduced on various textile, chemicals and other products
  • Gold and Silver (BCD reduced)
  • Agriculture Products: Custom duty increased on cottons, silks, alcohol etc.
  • Vivad Se Viswas Scheme Last Date of filing extended to 28th February, 2021.
  • Relief to Trusts – Charitable trusts running Hospitals and Educational Institutions relief increased from Rs.1 crore to Rs.5 crore
  • Tax holiday for Start-Ups extended to 31st March, 2022. Capital Gains exemption on investment in start ups also extended to 31s March, 2022.
  • Affordable Housing Projects – Tax Holiday extended till 31st March, 2022.
  • Affordable Housing – Additional Interest deduction (Sec 80EEA) of Rs.1.5 lakhs to be extended for loans taken till 31st March, 2022