Key Budget Proposals, Fin Bill, 2021

Income Tax

1. Relaxation in filing the returns for senior citizens of 75 years or more having Pension income and Interest income; However, TDS would be done;

2. Dispute Resolution Committee proposed to be established: [Assesses having Taxable income up to Rs 50 lakhs and Disputed amount up to Rs 10 lakhs can approach the same]

3. Faceless ITAT Announced; Personal hearing will be given in appropriate cases;

4. Clarity in taxation of the foreign PF and other funds when the NRs have migrated their residence to India;

5. The limit under Sec 44AB is enhanced to Rs 10 Cr from Rs 5 Cr where the cash receipts / exp is up to 5% of gross receipts / total payments;

6. Dividend is considered for calculating advance tax only on receipt basis / declaration basis;

7. TDS on foreign dividend shall be allowed as a credit; new set of rules proposed;

8. Affordable housing scheme - Threshold extended till 31st March 2022;

9. Some more tax incentives for IFSCs; Tax holiday for aircraft leasing; banking etc;

10. Pre filing of the returns with details of Cap gains; Interest; etc,;

11. Trusts having Edu institutions / hospitals: Automatic exemption is raised from Rs 1 Crore to Rs 10 Crore;

12. Late deposit of employees contributions shall be disallowed permanenetly;

13. Eligible start ups: Period is extended; Cap Gains also exempted;

GST

1. Rationalize the inverted duty structure.