“While pending disputes are being resolved or adjudicated, it is important that in future there is less number of disputes from fresh assessments. Hence, in order to provide early tax certainty to small and medium taxpayers, it is proposed to introduce a new scheme for preventing new disputes and settling the issue at the initial stage” says the budget memorandum.
The introduction of an online platform which will capture all the data about temporary workers is a big positive, said Lohit Bhatia, president of workforce management at staffing company Quess Corp.
From push to the financial sector to the healthcare budget, top mutual fund CEOs speak about the hits and misses of the budget 2021 presented by Finance Minister, Nirmala Sitharaman.
Peer Sensex surged 913.97 points to 47199.74 at around the same time. On the other hand, the broader BSE Midcap index traded 166.05 points up at 18248.28.
The deadline of March 31 for voluntarily filing of ITR (also the deadline for filing belated ITR) is proposed to be shifted forward to Dec 31 of the assessment year. This means that tax payers get 3 months less to file belated, revised ITRs which is the last chance to file an ITR voluntarily.
The benefit of the LTC Cash Voucher scheme is available in the old tax regime. If an individual opts for the new tax regime, then tax benefit under the scheme will not be available.
The 2021 budget has also proposed to remove the tax exemption under Section 10(10d) to Ulips with a premium of more than Rs 2.5 lakh a year. This will not apply to existing Ulips, but only to policies sold after 1 February this year.
To the extent that this ensures employers do not misuse or divert money meant for Employees’ Provident Fund (EPF), it will help increase surety of getting their PF money from the employers. Further, this will also ensure that there is no loss of interest for the employees on such contributions.
Property developers are expected to launch more affordable housing projects--the segment that has one of the leading demand patterns since the last three years--to claim 100% tax deduction on profits from such projects.
The deduction of Rs 1.5 lakh in a financial year is available under section 80EEA of the Income-tax Act, 1961. Deduction on payment of interest on a housing loan was introduced in Budget 2019. This deduction is available over and above the Rs 2 lakh deduction available on the interest payment on housing loan subject to certain conditions.
Finance minister Nirmala Sitharaman has proposed a permanent institutional framework to purchase investment-grade bonds in stressed times to deepen the corporate bond market.
The latest budget proposal means that taxpayers will now have to maintain all ITR-related documents for 4 years including the current assessment year instead of 7 years earlier .The latest budget proposal means that taxpayers will now have to maintain all ITR-related documents for 4 years including the current assessment year instead of 7 years earlier .