Key Highlights of Income Tax Proposals under Budget 2021-22 

Key Highlights of Income Tax , GST and Custom Proposals under Budget 2021-22 

The Union Finance Minister shall present her third Union Budget 2021-22 in the parliament on 1st February 2021 at 11 AM.

You may book mark the page and come back during and/or after the Budget Session for live Highlights of the proposals for Income Tax and GST etc.

Faith is the bird that feels the lights and sings when the dawn is still dark, says FinMin

Corporate Laws:

Decriminalisation of LLPs – Definition of Small Companies to be revised by exceeding capital threshold.  

Startups – incentive for incorporation of One Person Company (OPC)

NCLT ecourts to be introduced 

IPO of LIC to be brought

Separate admin structure for cooperatives

Income Tax Key Proposals:

• The Paying Bank to detect tax on income 
• Reopening of case – Time limit reduced to three years, increased to up to 10 years for serious tax evasion of 50 lakhs or more Read more >>
• Litigation-Faceless Dispute Resolution Committee to be set up for small taxpayers
• Increase in exemption limit u/s 10(23C)(iiiad) and (iiiae) to Rs. 5 crores Read More >>
• Raising of prescribed limit for exemption under sub-clause (iiiad) and (iiiae) of clause (23C) of section 10 
• Faceless Income Tax Appellate Tribunal Centre to be set up
• Rules for removing double taxation of NRIs
• Tax Audit Turnover limit further increased to 10 crores from 5 crores Read more >>
• Defective Returns – exemptions to be specified Read More >>
• Advance tax liability on Dividend income to arise only on declaration 
• Time Limit for filing belated/ revised return reduced Read more >>
• Additional Deduction for interest on affordable housing loan extended
• Constitution of the Board for Advance Ruling
• Tax exemption for notified affordable rental housing projects
• Details of capital gain/dividend/interest to be prefilled in  ITRs 
• Provisions to check double deductions by charitable institution Read more >>
• Relaxation for certain category of senior citizen of 75 years or more from filing return of income-tax (ITR) Read More >>
• Goodwill of a business or profession not to be considered depreciable asset and no depreciation to be allowed in any situation Read More >>
• TDS on payment of certain sum for purchase of goods-New Section 194Q Read More >>
• TDS/TCS on non filer of Income tax returns at higher rates. New Section 206AB and 206CCA Read More >>
• Amendment to provisions of transfer of revalued or self generated capital asset to partner on dissolution / reconstitution. Amendment under Budget 2021-22 Read More >>
• EPF contributions not deposited in time by employer – Late deposit not to be allowed as deduction   Read More >>
• Startups eligibility increased by 1 year, capital gain by investment in startups extended for one more year
• No changes in tax slabs/rates/Section 87A rebates

For GST Amendments Click Here >>

• PCIT cannot invoke the revisionary jurisdiction u/s 263 on instance of Assessing Officer
• AO can’t disturb income returned by assessee, without issue of notice u/s 143(2) – ITAT
• Source of cash being sales proceeds of household items upon sale of flat is plausible
• CPC was not justified in making the disallowance u/s 40a(ia) for non deduction of TDS
• No addition when cash deposited in bank was available as cash in hand in the books