by CA Nimesh Hariya | 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
by CA Nimesh Hariya | 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
by CA Nimesh Hariya | Feb 1, 2021 | Income Tax Update
- 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
