Income Tax Announcements in Budget 2021 | Budget with ClearTax
CA. Surbhi Punshi explains about income tax announcements made by Hon'ble Union Finance Minister Nirmala Sitharaman in #Budget2021.
This video covers aspects such as:
Exemption to senior citizens
Increase in turnover for the tax audit
Pre-filling of ITR
Income tax on dividend income
Reduction of time limit for reopening the assessment
Extension of time limit for deductions
Decoding Budget 2021 with ClearTax
✅ The 'Tax Audit’ limit under Section 44AB has been increased to Rs.10 crores from Rs.5 crores where 95% of business transactions are done in digital mode.
✅ Senior citizens aged above 75 years and with pension and interest on income are not required to file Income Tax Return (ITR).
✅ Taxpayers need to pay advance tax on dividend income only after the declaration or payment of dividend.
✅ If the PF amount was deducted but not deposited by the employer, it will not be allowed as a deduction for the employer.
✅ Section 43CA has been amended so that the stamp duty value can be up to 120% (earlier 110%) of the consideration if the transfer of an independent housing unit is made between 12.11.2020 and 30.06.2021.
✅ Now, Section 44ADA is applicable only to the resident individual, Hindu undivided family or a partnership firm other than LLP.
✅ The deduction for interest on housing loans under section 80EEA is to be extended to loans taken up to 31st March 2022.
✅ Tax holiday for affordable housing projects has been extended until 31 March 2022.
✅ The deduction under section 80IAC will be extended up to 31st March 2021.
✅ Till now, salary, tax payments and TDS are only pre-filled in ITR. Now, capital gains, dividend incomes, and interest income will also be pre-filled.
✅ The time limit to re-open income tax assessment cases has been reduced to 3 years from 6 years. Also, in case of serious tax evasion, the assessment can be reopened until 10 years, only when concealment of income is more than 50 lakh.
✅ The deadline for the “Vivad Se Vishwas” scheme has been extended to 28.02.2021.
✅ A “Dispute Resolution Committee” will be set up to reduce litigations for small taxpayers. Any taxpayer with taxable income up to 50 lakh and disputed income up to 10 lakh can approach the committee.
✅ Faceless Income Tax Appellate Tribunal (ITAT) for providing online resolution.
✅ FM proposes to notify rules for removing hardship for NRI due to double taxation.
✅ FM rationalized customs duty on copper, textile, gold and silver.
✅ Customs duty has been increased on solar inverters from 5% to 20% and solar lanterns from 5% to 15%.
✅ The exemption has been withdrawn on import of leather as they are domestically produced.
✅ Introduction of ‘Turant Customs’ initiative for faceless, paperless, and contactless customs measures.
#budget2021withcleartax #budgetclearhai #budget2021
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