No Income Tax Returns for Senior Citizens who are 75 years and above, who have only pension & interest income on the occasion of 75th year of India’s Independence
Section 194P inserted to direct banks to deduct taxes only after taking into account the Chapter VI-A deductions and Section 87A relief for the specified senior citizens
Time-Limit for re-opening of assessment:
Reduced to 3 years vis-à-vis 6 years from the end of the relevant assessment year.
Up to 10 years is proposed to be allowed only if there is evidence of undisclosed income of INR 50 Lakhs or more for a year.
Relief for tax on Dividend – Advance-tax on Dividends to arise only after the declaration / payment of such dividend. No TDS on dividend paid to REIT / InvIT
Dispute Resolution Committee for small taxpayers having taxable income upto Rs. 50 Lakhs and disputed income upto Rs.Rs. 10 Lakhs set up to be conducted in faceless manner
National Faceless Income Tax Appellate Tribunal Centre to be set up to facilitate communication between the Tribunal and the appellant electronically. Personal hearing to be done through video-conferencing
Tax Audit Limit increased to INR 10 Crore from INR 5 Crore (for those who carry out 95% of digital transactions)
Benefit of interest of Rs.1.5 Lakhs by way of Additional Deduction on affordable houses, now available till loans taken up to 31st March, 2022
Pre-filling of Returns – In ITR, certain details like Capital Gains from Listed Securities, Dividend Income, Interest from Banks, Post Office etc. will be pre-filled for ease of compliance
Interest on Provident Fund, in excess of Rs.2.5 Lakhs shall become taxable from FY 21-22
No Deduction to Employer under various labor welfare funds in case of late / no deposit of Employees Contribution by the employer.
Tax exemption on cash allowance given to an employee in lieu of LTC subject to incurring of specified expenditure.
Relaxation for NRIs with effect from 1st April 2022 in respect of their income accrued on foreign retirement benefit account. Rules to be notified for aligning the taxation of income arising on foreign retirement benefit account.
Eligibility period to claim Tax Holiday & Capital Gains exemption for investments made in Startups extended to 31st March, 2022.
Zero Coupon Bonds issued by notified Infrastructure Debt Fund (IDF) to become eligible for tax benefit.
No Minimum Alternate Tax (MAT) for foreign company if the applicable tax rate is less than the rate of MAT.
Provisional attachment of assets in case of penalty proceedings initiated for fake invoice / sham transactions of more than INR 2 Crore.
TDS of 0.1% on a purchase transaction exceeding INR 50 Lacs in a year only by persons whose turnover exceeds INR 10 Crore
Amount received at maturity shall be exempt for ULIPs in which Annual Premium is upto Rs. 2.5L for policies taken after 01st February, 2021
Settlement Commission discontinued with effect from 01st February, 2021.
No depreciation on Goodwill shall be allowed. However, deduction for the amount paid for acquiring Goodwill shall be allowed on sale of Goodwill
Key highlights on Indirect Tax
Overhauling the customs duty structure – proposed to review more than 400 old exemptions.
Withdrawal of exemption on imports of certain kind of leathers since it is produced domestically in good quality and quantity.
Revocation of ADD and CVD on certain steel products.
Revision of rates of customs duty for few items
Item Name
Revised Rate
Copper Scrap
2.50%
Gold and Silver
12.50%
Solar invertors
20%
Solar lanterns
15%
Cotton
10%
Raw silk and yarn silk
15%
Agriculture Infrastructure And Development Cess (AIDC) has been newly imposed on petrol and diesel at Rs. 2.5 and Rs. 4 per litre respectively.
A new initiative called ‘Turant Customs’ will be introduced for faceless, paperless, and contactless customs measures.
Supply of goods or services to any person (other than individual) to its members or constituents or vice-versa is treated as supply.
Taxpayer can claim ITC ONLY on those invoices appearing in GSTR – 2A and GSTR 2B
Interest on delayed payment of GST to be charged on NET cash liability instead of gross
Furnishing of annual return signed by specified professional is done away by allowing filing returns on a self-certification basis.