DIRECT TAX
1. Senior citizen having an age of more than 75 years with an income of interest and pension exempted from filing of return.
2. Threshold exemption limit under section 10(23C) for Charitable Institution (Educational & Medical Universities for charitable purpose only) raised from Rs. 1 Crore to Rs. 5 crores (aggregate receipts).
3. Dispute resolution committee: Anyone with total income less than 50 lacs and disputed income less than 10 Lacs can approach this, faceless committee.
4. Pre-Filling of Returns – Details of Capital Gains, Dividend Income and Interest income will be pre-filled in the returns.
5. The time limit for reopening of assessment reduced from 6 years to 3 years, Re-assessment can be done within 10 years if the concealed income exceeds Rs. 50 lakhs and approval of Principal CCIT is must.
6. Threshold limit for exemption from tax audit for digital transactions (95%) increased from Rs. 5 Crores to Rs. 10 Crores otherwise the old limit.
7. Vivad Se Viswas Scheme Last Date of filing extended to 28th February, 2021.
8. Advance tax liability on the dividend to accrue only after it is declared.
9. Dividend paid to InVITs and REITs shall be exempt from TDS.
10. Time limit for incorporation of a start up to claim deduction under Section 80-IAC further extended by one more year.
11. Government to notify rules to eliminate the double tax for NRIs on foreign retirement funds.
12. No deduction for any delay in deposit of employee’s contribution to the welfare schemes
COMPANIES ACT
13. Govt. provides a big boost to the Startups by allowing Non-Residents to incorporate OPCs in India, residency for a person setting up a One person company from 182 days to 128 days in India.
14. ‘Capital’ (Rs 50 lacs) and ‘Turnover’ ( Rs 2 crs) qualifying criteria for ‘One Person Company’ are proposed to be removed
15. Definition of small companies to be raised by increasing the capital limit from Rs 50 lakh to Rs 2 crore and turnover from Rs 2 crore to Rs. 20 crores
16. Govt. to introduce Data Analytics, Artificial Intelligence, Machine language-driven 3.0 version of MCA portal
OTHERS
17. Govt. to consolidate SEBI Act, 1992, Depositories Act, 1996 and SCRA into a single Securities Market Code
18. FDI in the Insurance sector to be increased from 49% to 74% with foreign control but with safeguards
19. SEBI will be notified as a regulator for a gold exchange
20. FM proposes the decriminalization of LLP Act, 2008
21. Affordable housing 1.5 lac deduction will now be even available for loan taken till 31.3.2022.
Also Read: Union Budget 2021: A transparent Budget
GST imp amendments proposed in Budget 2021-Brief
1. Exporter liable for penalty equal to 500% of refund claimed if Input taken on invoice obtained by fraud, collusion, wilful misstatement
2. Input Tax credit can be availed when supplier furnished the details of invoice in GSTR-1 and such details communicated to recipient (as shown in GSTR-2A/2B)
3. GST audit shall be omitted
4. GST Annual return may include a self-certified reconciliation statement reconciling value of supplies b/w GST returns and audited annual financial statement
5. Interest on delayed payment of GST shall be payable on that portion of GST which is paid in cash
6. Recovery of GST when registered person filing GSTR-1 not GSTR-3B in any of following modes
- (i) by detaining and selling the goods belonging to defaulter or
- (ii) recovery from any other person who owes money to defaulter or
- (iii) attachment of immovable property belonging to defaulter
7. Seized or detained goods shall be released on payment of following penalty :-
- (a) Where owner of goods comes forward – penalty equal to 200% of tax payable
- (b) Where owner of goods does not come forward – penalty equal to 50% of value of goods
8. Where person fails to pay penalty within 15 days, goods shall be sold or disposed and conveyance (truck etc) shall be released on payment of penalty or Rs 1 lakh whichever is less
Also Read: Union Budget 2021: Bits and pieces for travel and tourism sector
9. New section 151 proposed where Commissioner or any officer authorized by him direct any person to furnish information relating to any matter dealt with in connection with GST act.
10. Exporters liable to deposit the refund received along with interest in case of non-receipt of sale proceeds within the time limit prescribed under Foreign Exchange Management Act, 1999