PROACTIVE------QUALITY ------TRUST------REACHABLE------DYNAMIC------STANDARD------HANDHOLDING------PENNYWORTH------PROFESSIONALISM------RESPONSIVE------VALUE CHAIN. HIGHLIGHTS OF BUDGET 2021 - JATIN RATHOR ASSOCIATES
BUDGET 2021

HIGHLIGHTS OF BUDGET 2021

Direct Taxes:
 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

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