Budget 2021 | A bird's eye view of important provisions

CA Rohit kapoor | Last updated: 08 February 2021

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Quick Summary

Budget 2021 introduced several key changes affecting individuals and businesses. While tax rates remained the same, there are new rules regarding depreciation, housing loan interest deductions, and startup incentives. The budget also streamlined processing times for tax returns and notices, and introduced stricter conditions for TDS/TCS compliance. Additionally, amendments were made to CGST and IGST acts concerning interest on net tax liability and input tax credit.

Highlights of Important Provisions of Budget 2021 1) No Change in the Tax Rates under Normal or alternative Taxation Regime 2) W.e.f AY 2021-22, No Depreciation would be allowed on Goodwill of Business or Profession 3) Under Section 80EEA the last date of the Sanction of the loan has been e

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FAQ :

No, Budget 2021 did not introduce any changes to the tax rates under either the normal or alternative taxation regimes.

The deadline for the sanction of a loan under Section 80EEA, which provides for additional deduction on housing loan interest, has been extended to 31st March 2022.

The time limit for processing tax returns has been reduced from one year to nine months from the end of the financial year in which the return of income is filed.

Yes, resident individuals aged 75 or above are now exempt from filing their tax returns if their only income sources are pension and interest, and tax has been deducted at source by the bank.

The threshold for tax audit has been increased to 10 crore rupees, provided that cash receipts and cash payments do not exceed 5% of total receipts or total payments, respectively.

New sections, 206AB for TDS and 206CCA for TCS, will be introduced. If a deductee has not filed ITR for the previous two assessment years and the TDS amount exceeds 50,000 rupees in each year, the TDS/TCS rate will be higher of the specified rate, double the rate, or 5%.