BUDGET HIGHLIGHTS 2021-22
-Voluntary vehicle scrap policy and vehicle fitness test of after 20 years in case of personal vehicle and 15 years in case of commercial vehicle.
-The voluntary vehicle scrapping policy aims to remove inefficient vehicles so as to reduce vehicular pollution and oil import bills.
-Computation Residential status for one person company, number of days reduced from 182 days to 120 days.
-Incorporation of one-person companies without any restriction on paid-up capital or turnover and to convert into any other type of company at any time.
-De-decriminalization under the Companies Act, 2013 is complete and now the decriminalization of LLP Act, 2008 will be in force.
-Definition of small company to be raised by increasing the capital limit from 50 Lakhs to 2 crores and turnover from Rs 2 crore to Rs 20 crores.
-MCA 21 V3.0 to be introduced with additional modules for e-scrutiny and e-adjudication.
-Exemption from filing income tax returns for senior citizen (75 year and above), who only have pension and interest income.
-Reduction in time limit of IT proceedings:
Reopening of income tax assessment.
(A) In normal cases time limit has been reduced from 6 years to 3 years.
(B) In serious tax evasion cases it can be reopened till 10 years, only when concealment of income is more than 50 lakhs.
-The tax audit limit under Section 44AB has been increased from Rs.5 crores to Rs.10 crores where 95% of business transactions are done in digital mode.
-Dividend will be exempt from TDS but is still a taxable income. Advance tax liability on dividend income will arise only after declaration or payment of dividend by the Companies.
-No TDS will be levied on dividend pay-outs by REITs & InvITs.
-Salary, Tax Payments, TDS are already pre-filled. Capital Gains, dividend incomes, and interest income will now be pre-filled.
-Additional deduction of 1.5 lakhs under section 80EEA shall be available for loans taken up to 31st march 2022.
-Alteration in double taxation rules and taxation for NRIs, especially who return to India. Certain rules and guidelines will be implemented in order to remove hardship of Double Taxation wrt NRI’s income.
-One nation one ration card plan has been implemented by 32 States and UTs. Migrant workers benefit from this scheme as they can claim ration from anywhere in the country.
-In case the PF amount was deducted but not deposited by the employer, it will not be allowed as a deduction for the employer.
-In order to remove the genuine hardship faced by the NRIs in respect of their income accrued on foreign retirement benefit account Benefit Account due to mismatch in taxation, it is proposed to notify rules for aligning the taxation of income arising on foreign retirement benefit account.
-Extension of tax holiday for start-up by one more year.
-Tax exemption for aircraft leasing company.
-Set up of faceless dispute resolution mechanism for taxpayers.
-Levy a TDS of 0.1% on a purchase transaction exceeding 50 lakhs in a year, provided that the responsibility of deduction shall lie only on the persons whose turnover exceeds 10 crores.
-Basic custom duty on import of sub parts of mobile phones and battery charges raised from Nil to 2.5 % in FY 21-22.
-Reduction of custom duty to 7.5% in products of non-alloy, alloy and stainless-steel exempting duty on steel scrap till March 2022.
-Relief to copper recyclers, reducing duty on copper scrap from 5% to 2.5%.
-Increase in customs duty on cotton from nil to 10% and on raw silk and silk yarn from 10% to 15%.
-Increase in custom duty on solar inverters from 5% to 20% and solar lanterns from 5% to 15%.