Important Budget Updates:
Although there are no major tax amendments or reforms but some of the important amendments are as below:
No changes in Slab rate of taxes of anyone.
Exemption in filing of income tax return for senior citizen above 75 years of age in case where income is only from pension and interest income from the same specified bank.
Reassessment time limit reduced from 6 years to 3 years.
Reassessment upto 10 years if income escaped assessment is more than Rs. 50 Lakh.
Income tax appellate tribunal shall be faceless.
Audit limit increased to further Rs. 10 crore from current Rs. 5 crore.
Advance tax liability on dividend only after the declaration or payment of dividend.
Eligibility of additional deduction on interest paid for affordable houses extended to loan taken till 31.03.2022.
Education trust exemption limit u/s 10(23C) increased to Rs. 5 crore from Rs. 1 crore.
Now ITR shall be pre filled with capital gain from listed securities, dividend income and interest income from bank and post office along with salary receipt.
Now employer won’t be allowed deduction for late payment of ESI or PF.
No depreciation on Goodwill of any case.
Unit Linked Insurance plan for which benefit of 10(10D) is not available will be considered as capital asset.
Time limit for assessment has been further reduced from 12 months to 9 months. This time limit shall be applicable for assessment of AY 2021-22.
Now LLP excluded from 44ADA which was anyways not possible practically as LLP could not file ITR 4.
Due date for filing return of income of individual whose spouse is a partner in a firm whose accounts gets audited, due date for same would also be 31st October.
Due date for filing revised and belated return would now be December instead of March.
Modification to section 139(9).
New procedure for assessment/ re-assessment of search cases where search done after 31.03.2021. New section 148A shall be introduced.
The specified authority for approving enquiries, providing opportunity, passing order under section 148A of the Act and for issuance of notice under section 148 of the Act are proposed to be —
(a) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year;
(b) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year.
Income-tax Settlement Commission seize to function from 01.02.2021.
GST audit is made optional.
To Download Finance Bill CLICK HERE.
To download Finance Bill Memo CLICK HERE.