No Changes in Income Tax Slab Rates as compared to last Year.
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. But no exemption in payment of Income Tax.
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 upto 10
years & only with approval of Pr. CCIT.
Reducing Litigation for small tax payers – 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 only 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.
Employee contribution 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 start ups also extended to 31s March, 2022.
Companies Act, LLP Act :-
Easing Compliance requirements of Small Companies – Threshold increased to Share
Capital upto Rs.2 crore and Turnover upto Rs.20 crore will be Small Companies
Allow One Person Companies (OPC) to grow without any restriction in Share Capital or
Turnover. NRIs will be allowed to set-up OPCs. Presence in India of 120 days in a year
enough to start an OPC.
Launching MCA Version 3.0 – E-Scrutiny, E-Adjudication and Compliance management
to be simplified.
Decriminalisation of LLP Act, 2008
Tribunals to be rationalised