2 min read.Updated: 01 Feb 2021, 01:18 PM IST Edited By J. Jagannath
Senior citizens above 75 years of age with only pension income exempted from filing tax returns
Advance tax liability on dividend income shall arise only after payment of dividend
In her Union Budget 2021 speech, Finance Minister Nirmala Sitharaman on Monday announced a series of reforms. Income tax return filers increased to 6.48% in 2020 from 3.31 cr in 2014, said FM in Parliament while making direct tax announcements.
Here are a few of the key announcements made by Sitharaman:
Senior citizens above 75 years of age with only pension income exempted from filing tax returns. Pensioners over 75 years of age are exempt from filing returns.
Direct taxes left unchanged. Advance tax liability on dividend income shall arise only after payment of dividend.
₹1.5 lakh deduction on payment of interest for affordable housing extended by 1 year, FM.
Serious tax offences of concealment of income of over ₹50 lakh can be reopened after 10 years: FM.
Govt proposes to make income tax appellate tribunals faceless, to set up national income tax appellate tribunal centre: FM.
Exemption from tax audit limit doubled to ₹10 crore turnover for companies doing most of their business through digital modes: Sitharaman.
Cellphones likely to be costlier as FM announced some mobile parts/components will be subjected to 'moderate' custom duty.
Custom duty on some automobile parts to be increased to 15%. Custom duty on gold and silver to be rationalised, announced FM.
Sitharaman proposed to review more than 400 old exemptions in customs this year. To put into place new customs duty structure by 1 October, 2021.
Government to notify rules to eliminate double tax for NRIs on foreign retirement funds.
Custom duty on select iron and steel items reduced. Duty on shrimp feed in increased to 15% from 5%.
"On the direct tax front, the FM has given great relief by not increasing the rate. For the first time, the taxpayers may not complain for not reducing the rates and appreciate for maintaining the rates given the extent of fiscal deficit. The exemption from filing ITRs for senior citizens with only pension and interest income is definitely welcome. The increase in tax audit limit of ₹5 crore to ₹10 crore for businesses with digital transactions. The increase in time limit for affordable housing projects deduction and additional interest on loan borrowed for affordable housing will compensate the time lost due to the pandemic. In a similar manner extended time has been provided to start-ups on all aspects. The most important relief for all businesses would be the reduction in time limit for reopening of assessment would from 6 to 3 years for normal cases and only in the case of concealment of income of over ₹50 lakh it has been retained at 10 years. This would go long way in boosting investors’ confidence and ensuring tax certainty. In continuing with the reforms, now ITAT appeals have also been made faceless. The other important amendments for the capital market would include no advance tax liability on dividend," said Divakar Vijayasarathy, Founder & Managing Partner, DVS Advisors LLP.