- First digital Budget in the history of India
- Vehicle Scrapping Policy. Vehicle Fitness Test after 20 years in case of Personal vehicle and 15 years in case of commercial vehicles
- Rs. 64,180 crores allocated for New Health Schemes.
- Rs. 35,000 crores allocated for Covid Vaccine.
- 7 Mega Textile Investment parks will be launched in 3 years.
- Rs. 5.54 lakh crore provided for Capital Expenditure.
- Rs. 1.18 lakh crore for the Ministry of Roads.
- Rs. 1.10 lakh crore allocated to Railways.
- Proposal to amend Insurance Act. Proposal to increase FDI from 49% to 74 %.
- Deposit Insurance cover (DICGC Act 1961 to be amended). Easy and time-bound access of deposits to help depositors of stress banks.
- Proposal to revive definition of ‘Small Companies’ under Companies Act 2013. Capital less than 2 Cr. and Turnover Less than 20 Cr.
- IPO of LIC, Announced : Disinvestment of Companies will be completed in FY 2021-22
Direct Tax Proposals:-
- Our Tax system should be transparent and efficient.
- Relief for Senior Citizens: 75 years and above with only Pension and Interest – No need to file Return. TDS will be deducted.
- The time limit to reopen cases reduced from 6 years to 3 years. In serious cases ie 50 lakhs or more 10 years.
- A dispute resolution committee shall be set up for small taxpayers with Income up to 50 lakhs and disputed income up to 10 lakhs.
- All communication with ITAT shall be electronic providing for faceless appeal at ITAT
- NRIs will get relief from difficulties due to differences in fiscal year and claims of the foreign tax credit.
- Tax audit limit of 5 crores for assessee having more than 95% receipts and payments non-cash increased to 10 crores.
- No TDS on dividend paid to REIT and INVIT.
- Advance Tax on dividend income shall arise only after the declaration of the dividend and foreign investors shall be eligible for lower TDS.
- Infrastructure Debt Funds shall be allowed to issue Zero Coupon Bond.
- Housing Loan interest deduction u/s 80EEA extended by one year for loans up to 31/3/22.
- Deduction for housing project u/s 80IBA extended for one more year up to 31/3/22.
- Tax Exemption shall be provided for rental housing.
- IFSC shall be eligible for a tax holiday on Capital Gains.
- Income Tax return prefill option shall include Capital Gains on listed securities, Dividend, Interest from Banks and Post office.
- The turnover limit for 10(23C) exemptions for educational and medical trusts shall increase from 1 crore to 5 crores.
- Late deposit of Employee Contribution to funds shall be disallowed for the employer.
- Deduction u/s 80IAC for startups shall be extended up to 31/3/22. Exemption for investment in start-up shall also be extended for one year.
MCA, Companies Act, LLP Act Proposals:-
- Easing Compliance requirements of Small Companies – Threshold increased to Share Capital up to Rs.2 crore and Turnover up to Rs.20 crore will be Small Companies.
- Allow One Person Companies (OPC) to grow without any restriction in Share Capital or Turnover.
- NRIs will be allowed to set-up OPCs. Presence in India of 120 days in a year enough to start an OPC.
- Launching MCA Version 3.0 – E-Scrutiny, E-Adjudication, and Compliance management to be simplified.
- Decriminalization of LLP Act, 2008.
- Tribunals to be rationalized.
Major GST proposals from Finance Bill, 2021
- Amendment in Section 50, to implement interest applicability on Net cash liability basis retrospectively w.e.f 01.07.2017
- Amendment in Section 16 mandating supplier to report invoices or debit notes in GSTR-1 for availing ITC.
- Section 35 and 44 amendments to remove GSTR-9C for all taxpayers. Taxpayers shall file self-certified reconciliation statement along with an annual return.
- Amendments in Section 16 of IGST Act – zero-rated supplies:-
- Only one option to export – Without payment of tax. In case of non-realization of consideration for export of goods, any refund shall be paid back along with interest
- Export with payment of tax available only for notified suppliers notified supplies
- Supplies to SEZ unit/developer only for authorized operations will be considered as zero-rated supplies and are eligible for refund
- Note:- The effective date of these provisions shall be notified later (probably from 01.04.2021)
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