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Budget 2021 Top Level Highlights
- Vivad Se Viswas Scheme Last Date of filing extended to 28th February, 2021.
- Citizens of age 75 years and above who have only Pension and Interest income – Need not file Income Tax Returns
- Re-opening of Assessment to reduced to 3 years from 6 years. Only where evidence of concealment of Income of Rs. 50 lakhs or more – re-opening can be made up to 10 years & only with approval of Pr.CCIT.
- Reducing Litigation for small taxpayers – Constitution of Faceless Dispute Resolution Panel for people with Total Income upto Rs.50 lakh and disputed income of Rs.10 lakh
- Income Tax Appellate Tribunal to become Faceless – Only electronic communication will be done • Relaxation to NRIs – Rules to remove hardship of Double Taxation
- Tax Audit Limit to be increased to Rs.10 crores from Rs.5 crores for those having less than 5% cash transactions
- Dividend Tax– Dividend will be exempt from TDS. Advance tax liability on dividend income will arise only after declaration or payment of dividend. For Foreign Investors – lower treaty rate benefit will be given.
- Affordable Housing – Additional Interest deduction (Sec 80EEA) of Rs.1.5 lakhs to be extended for loans taken till 31st March, 2022.
- Affordable Housing Projects – Tax Holiday extended till 31st March, 2022.
- Tax Holiday for Capital Gains for Aircraft Leasing Companies and Tax Exemption to Lease paid to Foreign Persons
- Pre-Filling of Returns – Details of Capital Gains, Dividend Income and Interest income will be pre-filled in the returns
- Relief to Trusts – Charitable trusts running Hospitals and Educational Institutions relief increased from Rs.1 crore to Rs.5 crore. Also, repayment of loan/borrowing to be allowed as application of income in case of trusts
- Employee contribution in case of provident funds and other cases not paid by employer will not be allowed as a deduction.
- Tax holiday for Start-Ups extended to 31st March, 2022. Capital Gains exemption on investment in startups also extended to 31st March, 2022.
- Time for completion of assessments is proposed to be 9 months from the end of the assessment year
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