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Relaxations.
Exemption from filing returns
Senior citizens, aged 75 & above, need not file tax returns provided their income comprises only of interest and pension.
Small Taxpayer assessments
Reopening of cases is now restricted to 3 years. A Dispute Resolution Panel shall also be set up for assesses with taxable income upto Rs. 5 Million (50 Lakhs)
Faceless assessments extended
Appeals to Income Tax Appellate Tribunal will also be made faceless.
Audit exemptions
Tax audit limit increased from Rs. 50 Million (5 Crores) to Rs. 100 Million (10 Crores). GSTR 9C, annual audit proposed to be withdrawn.
Advance tax on Dividend
Advance tax shall be payable only after declaration or payment of dividend. This will help reduce interest outflow.
Interest on housing loan
Deduction of interest paid with respect to affordable housing loan, of Rs. 150,000 extended to 31 Mar, 2022.
Sector specific proposals.
Real Estate
Tolerance limit for sale of homes of value less than Rs. 20 Million (2 Cr.) increased from 110% to 120%.
Agri Infra Cess
AIC introduced on petrol (Rs. 2.5/l) and high speed diesel (Rs. 4/l). There will be no change in the end consumer price as excise duty will be adjusted.
Startups
Time limit to qualify as Startup to avail tax holiday extended by 1 year to 31 Mar, 2022. Norms for Small Company and One Person Company relaxed.
Imports
Customs duty on components used in smartphones increased by 2.5%. Duty on Gold reduced to 10%, 24C gold to get cheaper by Rs. 1,500 (10gms)
Exporters
Class of exporters to be defined who can claim refund of input credit by corresponding payment of IGST on export sale.
BFSI
FDI in insurance to be increased to 74%. Asset reconstruction and management company ('bad bank') to take over NPAs.
Restrictions & Safeguards.
Fake invoices
Tax officer can attach asset if claims through fake invoices exceed Rs. 20 Million (2 Cr.).
Presumptive Taxation
Sec. 44ADA, presumptive tax norms for professionals will not be available to Limited Liability Partnerships.
Employee contribution to pf
Delay in depositing monthly employee contribution to PF shall result in its disallowance. The change applies retrospectively.
Goodwill
Depreciation on goodwill will no longer be allowed. Depreciation claimed till 31 Mar, 21 shall be adjusted in cost.
Revision of ITR, completion of assessment
Time limit for revision of ITRs, and for completion of assessments reduced by 3 months.
Additional Tax.
Interest on Employee PF
Interest on Employee PF contributions in excess of Rs. 250,000 p.a. (Rs. 20,800 p.m.) would now be subjected to tax.
ULIP to be taxed
Tax exemption enjoyed by Unit Linked Insurance Schemes, if aggregate annual premium is more than Rs. 250,000 will be withdrawn.
New TDS provision
Buyers with turnover more than Rs. 100 Million (10 Cr.) shall deduct 0.1% tax on purchase of goods of value more than Rs. 5 Million (50 Lakhs)
Higher TDS for non-filers
Higher TDS rates shall apply to non-filers as well. As of date, this was applicable only to persons without PAN.
Equalisation Levy
EL scope expanded to include more digital services, including emails However, transactions subject to tax as royalty / FTS, shall not be liable to EL.
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