BUDGET 2021 – GROWTH OVER DEFICIT

BUDGET’2021- HIGHLIGHTS

GENERAL:

1. First digital Budget in the history of India
2. Vehicle Scrapping Policy. Vehicle Fitness Test after 20 years in case of Personal vehicle and 15 years in case of commercial vehicles
3. 64,180 crores allocated for New Health Schemes
4. 35,000 crores allocated for Covid Vaccine
5. 7 Mega Textile Investment parks will be launched in 3 years
6. 54 lakh crore provided for Capital Expenditure
7. 18 lakh crore for Ministry of Roads
8. 10 lakh crore allocated to Railways
9. Proposal to amend Insurance Act. Proposal to increase FDI from 49% to 74 %.
10. Deposit Insurance cover (DICGC Act 1961 to be amended). Easy and time bound access of deposits to help depositors of stress banks.
11. Proposal to revive definition of ‘Small Companies’ under Companies Act 2013. Capital  less than 2 Cr. and Turnover Less than 20 Cr.
12. Disinvestment: IPO of LIC, Announced Disinvestment of Companies will be completed in FY 2021-22
13. Bad loan bank announced for NPA’s

DIRECT AND INDIRECT TAX

14. Senior Citizens: Reduced Compliance burden. 75 years and above. Proposal not to file ITR if only pension income and interest income.
15. Reduction in time for IT Proceedings: Reopening of Assessments period reduced from 6 years to 3 years except in cases of serious tax evasion cases
16. Proposal to constitute ‘Dispute Resolution Committee’ for small taxpayers. (Taxable income 50 lakhs and disputed income 10 lakh)
17. National Faceless Income Tax Appellate Tribunal Centre
18. Relaxations to NRI: Propose to notify rules for removing hardship for double taxation
19. Tax Audit Limit: Proposal of tax audit increased from 5 Cr. to 10 cr. (Only for 95%  digitized payments business)
20. Propose to provide relief on advance tax liability on dividend income.
21. Propose to include tax holidays for Aircraft leasing companies
22. Prefiling of returns (Salary, Tax payments, TDS etc.)  Details of Capital gains from listed Securities, dividend income, etc. will be prefilled
23. Small Charitable Trusts. Increased from 1 crore to 5 crores (Compliance limit)
24. Late deposit of employee’s contribution by employer will not be allowed as deduction
25. Incentive to start-up: Tax holiday exemption for one more year
26. Duties reduced on various textile, chemicals and other products
27. Gold and Silver (BCD reduced)
28. Agriculture Products: Custom duty increased on cottons, silks, alcohol etc.
29. GST Audit : Requirement of getting annual accounts audited and reconciliation statement submitted removed.

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