No Major Tax Amendments: Key Highlights of Union Budget 2021 [Read Finance Bill]

In her fourth consecutive budget speech, the Union Finance Minister Nirmala Sitharaman announced some major proposals. The following are the major proposals of the Budget 2020.

1. Relief to senior citizen: The budget proposes exemption of income tax for senior citizen having only pension and interest income.
2. Reassessment: The budget proposal will amend section 148 of the Income Tax where the time limit for reassessment has been reduced to 3 years from 6 years. The proposal addresses serious tax evasion, where evasion evidence is Rs.50 lakhs or more can be re-opened within 10 years.
3. Dispute resolution committee: Anyone with total income less than 50 lacs and disputed income less than 10 Lacs can approach this, faceless committee.
4. Faceless ITAT Centre: faceless ITAT centre will be set where personal hearings will be conducted through Video Conferences
5. No Tax Audit for Companies having turnover upto 10 crores.
6. Advance tax liability on dividend will arise only after declaration of dividend
7. Affordable housing 1.5 lac deduction will now be even available for loan taken till 31.3.2022
8. Budget also extended incentive provided under 80IBA extended till 31.3.2022.
9. Tax incentive of affordable renting housing project extended till 2022.
10. Pre filled income tax return will have pre filled data regarding Dividend, post office interest income, salary etc.
11. Educational Trusts and hospitals: limit increased from Rs.1 Cr to Rs. 5 crore (10(23C)
12. Late deposit of employee contribution of PF will now be not allowed as deduction.

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