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Budget-20-21 - QUICK LOOK

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Budget-20-21 - QUICK LOOK
By: CS Swati Dodhi
February 1, 2021
All Articles by: CS Swati Dodhi       View Profile
  • Contents

INCOME TAX

1.Audit exemption extended from 5 crores to 10 crores - in the case of a person whose aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed 5% of the said amount; and aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent of the said payment

2. Period for Reopening of assessment u/s 148 reduced from 6 years to 3 years except income escaping assessment is more than 50 lacs. In cases where income escaping assessment is more than 50 lacs extended time period of reopening apply with approval of Principal CCIT.

3. Dispute Resolution System for small taxpayers having income up to 50 lacs and disputed tax up to 10 lacs.

4. ITAT shall become faceless. Personal Proceedings to be conducted through video conferencing only, if required.

5. Senior citizens above 75 years exempted from return filing if they have only pension income and interest income and entire tax has been deducted from pension by the paying bank.

6. TDS on Dividend Reduced - Interest on non payment of advance tax to be charged after declaration of dividend by the company only.

7. For small charitable educational and medical trusts having gross receipts up to 5 cores exempted from income tax without obtaining approvals. Earlier this limits was 1 crore.

8. Late deposit of employee contribution shall not be allowed as deduction.

9. Additional Affordable Housing deduction up to 1.5 lacs  extended for loans taken up to 31-03-2022.

10. Prefilled IT Returns Introduced which shall also contain data for capital gains, interest, dividends etc.

11. Belated return or revised return could now be filed 3 months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

12. Relaxation in provisions for defective returns shall be granted for a class of Assessee's.

13. Advance Ruling Authority(AAR) shall be abolished from a notified date and it shall give way to a “Board for advance rulings.

14. Income Tax Settlement Commission to be abolished. It shall give way to Interim board for pending applications.

15. Time for completing of assessment is proposed to be nine months from the end of the assessment year.

16. In case of trusts, no set off or deduction or allowance of any excess application, of any of the year preceding the previous year, shall be allowed

17. Repayment of loan/borrowing to be allowed as application of income in case of trusts.

GST

1.GST audit abolished. GSTR 9C reconciliation to give way to new self certified reconciliation with GSTR-9. 

2. Mutuality of supply between person and its members/constituents shall form part of definition of supply retrospectively w.e.f. 01-07-2017. All judgments overruled. Para 7 of Schedule II also omitted consequentially.

3. Condition inserted in section 16(2) that ITC can be taken only if communicated in GSTR-1 of supplier.

4. Interest on late payment from cash ledger u/s 50 given retrospective effect w.e.f. 01-07-2017

5. Recovery proceedings u/s 79 can be initiated in cases where outward supply declared in GSTR-1 but tax not paid in GSTR 3B

4. For appeal against detentions u/s 129, 25% of penalty has to be pre deposited.

5. Penalty has to be paid @ 200% if the consignor/conginee comes forward. Applicable tax has been waived

 

By: CS Swati Dodhi - February 1, 2021

 

 

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