Indian Union Budget 2021 Key Highlights on Taxations

Indian Union Budget 2021 Key Highlights on Taxations

Ø  No change in I-T slabs

Ø  Customs duty on solar lanterns cut to 5%

Ø  Customs duty on cotton increased to 10%, silk to 15%

Ø  Customs duty on some auto parts to be raised to 15%

Ø  Customs duty on copper scrap cut to 2.5%

Ø  Propose to notify rules to eliminate double taxation for NRIs on foreign retirement funds

Ø  Late deposit of employee's contribution to PF by employers will not be allowed as deduction to employer

Ø  To further ease filing of IT returns, details of capital gains and interest from banks, post offices, etc will be pre-filled.

Ø  Tax holiday for affordable housing extended for one more year till March 31, 2022.

Ø  Propose to make dividend payments to REIT (estate investment trusts) and Invit's (Infrastructure investment trusts) exempt from TDS.

Ø  Advance tax liability on dividend income shall arrive only after declaration of payment of dividends

Ø  Tax audit limit increased from Rs 5 crore to Rs 10 crore

Ø  announces faceless dispute resolution panel and at ITAT

Ø  Will reduce the time limit for reopening assessments to 3 years from present 6 years

Ø  For senior citizens over 75 who only have pension and interest income, I propose exemption of filing of income tax returns.