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.
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