Highlights of Union Budget FY 2021-22.
- 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
- 64,180 crores allocated for New Health Schemes
- 35,000 crores allocated for Covid Vaccine
- 7 Mega Textile Investment parks will be launched in 3 years
- 5.54 lakh crore provided for Capital Expenditure
- 1.18 lakh crore for Ministry of Roads
- 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.
- Disinvestment: IPO of LIC, Announced Disinvestment of Companies will be completed in FY 2021-22
Direct and Indirect tax
- Senior Citizens: Reduced Compliance burden. 75 years and above. Proposal not to file ITR if only pension income and interest income.
- 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
- Proposal to constitute ‘Dispute Resolution Committee’. (Taxable income 50 lakhs and disputed income 10 lakh).
- National Faceless Income Tax Appellate Tribunal Centre
- Relaxations to NRI: Propose to notify rules for removing hardship for double taxation.
- Tax Audit Limit: Proposal of tax audit increased from 5 Cr. to 10 cr. (Only for 95% digitized payments business)
- Propose to provide relief on advance tax liability on dividend income.
- Propose to include tax holidays for Aircraft leasing companies
- Prefiling of returns (Salary, Tax payments, TDS etc.) Details of Capital gains from listed Securities, dividend income, etc. will be prefilled
- Small Charitable Trusts. Increased from 1 crore to 5 crores (Compliance limit)
- Late deposit of employee’s contribution by employer will not be allowed as deduction
- Incentive to startup: Tax holiday exemption for one more year
- Duties reduced on various textile, chemicals and other products
- Gold and Silver (BCD reduced)
- Agriculture Products: Custom duty increased on cottons, silks, alcohol etc.