Budget 2021 Key Highlights : Direct Tax
- NO CHANGES introduced in the Income Tax Slabs for FY 2021-22 (AY 2022-23)
- NO ITR for Senior Citizens (aged 75 years & above) having only pension and interest income.
- NO REOPENING of income tax assessment cases after 3 years. Earlier it was allowed to be done for 6 years.
- Proposed reforms for Non-Residents Indians.
- Proposed to constitute DRC (Dispute Resolution Committee) in cases involving taxable income upto Rs 50 lakhs and disputed income upto Rs 10 lakhs.
- Proposed to provide relief in TDS and advance tax compliances for dividend and interest income.
- Income Tax Appellate Tribunal Center to go faceless. Cases requiring physical meetings to be done through video conferencing.
- Prefilled ITRs to have more details including details of capital gains, interest income, and dividend income.
- Reduced time period to complete assessment from 12 months to 9 months.
- Income-tax Settlement Commission to be discontinued
- LLP not eligible to opt-in the benefits of presumptive taxation Section 44ADA
- Deduction for affordable home buyers gets an extension for one more year
- Investment in Startups: Capital gain exemption to be allowed for another year
- Tax audit threshold increased from 5 cr to 10 cr in case of min 95% digital payments
