Union Budget 2021-22

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Budget Finance Minister Nirmala Sitharaman announced Union Budget 2021-22  on the 1st of February, 2021. This Budget assumes enormous importance and effective as it comes amid the novel coronavirus pandemic, which has led to massive economic disruption in India and around the world. In this article, we will discuss on Union Budget 2021 and its various significant factors.

Union Budget 2021-22

The Union Budget 2021-22 was presented by the Hon’ble Finance Minister Nirmala Sitharaman on 1st February 2021 in the Parliament. The Budget speech was presented by the FM from 11 a.m. to 1 p.m. Also, the Budget lays focus on the seven pillars for strengthening the economy – Health and Wellbeing, Physical and Financial Capital and Infrastructure, Inclusive Growth for Aspirational India, Reinvigorating Human Capital, Reform and R&D, and Minimum Government Maximum Governance. Several regulations around the securities market are proposed to be merged as a single code. Various direct taxes and indirect taxes amendments were also proposed.

Tax Proposals – Union Budget highlights 2021-22

Certain tax proposals were introduced, providing relaxation to individual taxpayers and startups to some extent. The following are other proposed amendments:

#No ITR Filing for Senior Citizens aged 75 years and above

#Reduction in time for IT Proceedings

#Constitution of ‘Dispute Resolution Committee

#Changes Proposed In GST

  • Obligatory Audit Requirement Relaxed.
  • Interest Payable Only On Net Liability.
  • Credit Available Only If Defined Conditions Fulfilled.

#National Faceless Income Tax Appellate Tribunal Centre

#Additional Interest deduction (Sec 80EEA) of Rs.1.5 lakhs to be extended for affordable house loans taken till 31.03.2022

#Details of Capital Gains, Dividend Income and Interest income will be pre-filled in the ITR

#Re-opening of Tax Assessment to be reduced to 3 years from 6 years.

#Income Tax Holiday & Angel Tax Exemption for Start-Ups extended to 31.03.2022

#Vivad Se Viswas Scheme Last Date of filing extended to 28th February 2021.

#Faceless Dispute Resolution Panel formed for people with Total Income up to Rs.50 lakh and disputed income of Rs.10 lakh to resolve tax disputed

#Tax Audit Limit to be increased to Rs.10 crores from Rs.5 crores for those having less than 5% cash transactions.

#No TDS on Dividend – Dividend will be exempt from TDS. Advance tax liability on dividend income will arise only after the declaration or payment of the dividend.

#Launching MCA Version 3.0 – E-Scrutiny, E-Adjudication and Compliance management to be simplified.

#Allow One Person Company (OPC) to grow without any restriction in Share Capital or Turnover.

#Custom duties on steel and copper reduced.

#Dividend will be exempt from TDS. Advance tax liability on dividend income will arise only after declaration or payment of the dividend.

#35,000 crores allocated for Covid Vaccine

#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

#7 Mega Textile Investment park scheme

#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 the Insurance Act

If you want any other guidance concerning Union Budget 2021-22 please feel free to talk to our business advisors at 8881-069-069.

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