Budget 2021 Key Highlights : Direct Tax

 

  • NO CHANGES introduced in the Income Tax Slabs for FY 2021-22 (AY 2022-23)
  • NO ITR for Senior Citizens (aged 75 years & above) having only pension and interest income.
  • NO REOPENING of income tax assessment cases after 3 years. Earlier it was allowed to be done for 6 years.
  • Proposed reforms for Non-Residents Indians.
  • Proposed to constitute DRC (Dispute Resolution Committee) in cases involving taxable income upto Rs 50 lakhs and disputed income upto Rs 10 lakhs.
  • Proposed to provide relief in TDS and advance tax compliances for dividend and interest income.
  • Income Tax Appellate Tribunal Center to go faceless. Cases requiring physical meetings to be done through video conferencing.
  • Prefilled ITRs to have more details including details of capital gains, interest income, and dividend income.
  • Reduced time period to complete assessment from 12 months to 9 months.
  • Income-tax Settlement Commission to be discontinued
  • LLP not eligible to opt-in the benefits of presumptive taxation Section 44ADA
  • Deduction for affordable home buyers gets an extension for one more year
  • Investment in Startups: Capital gain exemption to be allowed for another year
  • Tax audit threshold increased from 5 cr to 10 cr in case of min 95% digital payments

Frequently Asked Questions

Q- For which period Finance Act 2021 shall apply?

Finance Act 2021 shall apply for all the financial transactions incurred between 1st April 2021 to 31st March 2022 i.e. for the financial year (FY) 2021-22 and assessment year (AY) 2022-23.


Q- What is the Union Budget?

Union or annual budget of India is the estimated representation of sources of government revenues and expenditures. It includes the various plans on which the government would be working on in the upcoming fiscal year and the fund allocation to each of them.


Q- At what time the budget is announced?

The budget presentation in the parliament of India starts at 11 am. Until 1999 the budget was used to be presented in the evening at 5pm.


Q- On which date Budget is presented?

The budget is usually presented on the 1st day of the month of February, except in the case of interim budgets. This tradition was changed in the year 2017. Prior to which the budget was presented on the last day of February.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

X

Union Budget 2023-24

Has your take home salary increased? Check the impact of Budget 2023 on your income

Check Now