1. DIRECT TAX
  • Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying bank
  • Time limit for re-opening cases reduced to 3 years from 6 years
  • Serious tax evasion cases, with evidence of concealment of income of Rs. 50 lakh or more in a year, to be re-opened only up to 10 years, with approval of the Principal Chief Commissioner
  • Dispute Resolution Committee to be set up for taxpayers with taxable income up to Rs. 50 lakh and disputed income up to Rs. 10 lakh
  • National Faceless Income Tax Appellate Tribunal Centre to be established
  • Limit of turnover for tax audit increased to 10 crore from Rs. 5 crore for entities carrying out 95% transactions digitally
  • Dividend payment to REIT/ InvIT exempt from TDS
  • Advance tax liability on dividend income only after declaration/ payment of dividend
  • Deduction of tax on dividend income at lower treaty rate for Foreign Portfolio Investors
  • Infrastructure Debt Funds made eligible to raise funds by issuing Zero Coupon Bonds
  • Relaxation of some conditions relating to prohibition on private funding, restriction on commercial activities, and direct investment
  • Additional deduction of interest, up to Rs. 1.5 lakh, for loan taken to buy an affordable house extended for loans taken till March 2022
  • Tax holiday for Affordable Housing projects extended till March 2022
  • Tax exemption allowed for notified Affordable Rental Housing Projects
  • Tax holiday for capital gains from incomes of aircraft leasing companies
  • Tax exemptions for aircraft lease rentals paid to foreign lessors
  • Tax incentive for relocating foreign funds in the IFSC
  • Tax exemption to investment division of foreign banks located in IFSC
  • Details of capital gains from listed securities, dividend income, interest from banks, etc. to be pre-filled in returns
  • Exemption limit of annual receipt revised from ₹1 crore to ₹5 crore for small charitable trusts running schools and hospitals SEC.10(23C)
  • Late deposit of employee‟s contribution by the employer not to be allowed as deduction to the employer
  • Eligibility for tax holiday claim for start-ups extended by one more year
  • Capital gains exemption for investment in start-ups extended till 31st March, 2022

2. Indirect Taxes

GST:

Custom Duty Rationalization:

  • Twin objectives: Promoting domestic manufacturing and helping India get onto global value chain and export better
  • 80 outdated exemptions already eliminated
  • Revised, distortion-free customs duty structure to be put in place from 1st October 2021 by reviewing more than 400 old exemptions
  • New customs duty exemptions to have validity up to the 31st March following two years from its issue date
  • Some exemptions on parts of chargers and sub-parts of mobiles withdrawn
  • Duty on some parts of mobiles revised to 2.5% from ‘nil’ rate
  • Customs duty reduced uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steels
  • Duty on steel scrap exempted up to 31st March, 2022
  • Anti-Dumping Duty (ADD) and Counter-Veiling Duty (CVD) revoked on certain steel products
  • Duty on copper scrap reduced from 5% to 2.5%
  • Basic Customs Duty (BCD) on caprolactam, nylon chips and nylon fiber & yarn reduced to 5%
  • Calibrated customs duty rates on chemicals to encourage domestic value addition and to remove inversions
  • Duty on Naptha reduced to 2.5%
  • Custom duty on gold and silver to be rationalized
    Renewable Energy:
  • Phased manufacturing plan for solar cells and solar panels to be notified
  • Duty on solar invertors raised from 5% to 20%, and on solar lanterns from 5% to 15% to encourage domestic production
  • Tunnel boring machine to now attract a customs duty of 7.5%; and its parts a duty of 2.5%
  • Duty on certain auto parts increased to general rate of 15%
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