New Delhi: Finance Minister Nirmala Sitharaman on Monday presented the budget for the financial year 2021-22 (Union Budger 2021-22).
1. Nirmala Sitharaman has given relief to people above 75 years of age in the budget this time. Senior citizens in this category are exempted from filing income tax returns if their only source of income is pension and interest.
2. While presenting the budget, Nirmala Sitharaman announced an important plan of the Central Government. He has announced to reduce the tax reopening case from six years to three years.
3. The Finance Minister has announced relief to the taxpayers that now the capital gain will be pre-filed with the income generated from other interest. That means it doesn't need to be filed separately.
4. The Central Government has proposed to set up a National Income Tax Appellate Tribunal Center to make the Income Tax Appellate Tribunal faceless.
5. It has been announced to double the exemption from tax audits for companies doing business through a digital medium.
6. Cases involving concealment of income above Rs 50 lakh can be opened even after 10 years.
Finance Minister Nirmala Sitharaman presented the general budget on Monday. The government has proposed to increase agri cess on petrol by Rs 2.5 and diesel by Rs 4. At the same time, the FDI limit in the insurance sector has been increased from 49 per cent to 74 per cent. The middle class got nothing in the budget. The government has not made any changes in the income tax slab and has not given any exemption. However, the period of extra rebate of up to Rs 1.5 lakh in interest on affordable housing has been extended by one year till March 2022, while pensioners above the age of 75 are exempted from filing income tax returns.
A big notice attached to the tax
On the 75th anniversary of independence, we want to provide relief to senior citizens aged 75 and above. He no longer needs to file an IT return.
At present, a case can be opened even after 6 years of tax reassessment and 10 years in a serious case. It has now been reduced to 3 years. In a serious case, if the issue is to hide more than Rs 50 lakh in a year, the case can be opened for 10 years. Only the commissioner will approve it.
Tax disputes worth Rs 85,000 crore have come to an end recently. A Dispute Resolution Committee will be formed, with people with income up to Rs 50 lakh and disputed income up to Rs 10 lakh going to the committee. There will be a National Faceless Appellate Tribunal.
At present, if the turnover exceeds Rs 1 crore, a tax audit will have to be done. The exemption for 95% digital transactions was increased to 50 million last time. It has now been increased to 10 crores.
TDS will no longer be levied on dividend payments
Home is a priority for everyone. A provision of Rs 1.5 lakh was made in interest on a home loan. Now an extra rebate of Rs 1.5 lakh in interest for affordable housing has been kept till March 31, 2022.
Custom duty
400 old discounts will be reviewed. This will be done based on advice. The revised customs duty structure will start from October 1 this year.
Customs duty on iron and steel is being reduced to help metal recyclers. Duty will also be removed in Copper Scape.
Gold and Silver are currently subject to 12.5% customs duty, which will be rationalized. Auto parts will be subject to 15% customs duty.
To help farmers, 10% customs duty will be levied on cotton, 15% on raw rations and ration weaving.
Vehicle scraping
A voluntary vehicle scrapping policy will be introduced to remove old vehicles. This will help reduce pollution.
The vehicles will be fitness tested. Personal vehicles will be scrapped after 20 years and commercial vehicles after 15 years.
The political deficit is projected to narrow
"We have increased government spending since the end of the lockdown," the finance minister said. Government expenditure is estimated at Rs 30.42 lakh crore in 2020-21, which will increase to Rs 34.5 lakh crore. The political deficit in 2021 is 9.5% of GDP. We need Rs 80,000 crore more to compensate for that. That is what we expect from the market. Government expenditure is estimated at Rs 34.83 lakh crore in 2021-22. Political deficit is projected to be 6.8 percent of GDP in 2021-22. It is projected to be reduced to 4.5 percent by 2025-26. The contingency fund has been increased from Rs 500 crore to Rs 30,000 crore.
Budget 2021: No difference in income tax slab but six big news related to tax
2021: No change in income tax slab, yet these 5 changes related to tax have happened in the budget!
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