The Union Finance Minister, Nirmala Sitharaman, have proposed no change in the Income Tax Slabs in the Union Budget 2021. The income tax structure has been kept as earlier. However, some relief have been announced for the senior citizens. It was announced that the senior citizens above the age of 75 years will exempted from filing the income tax return.
- The government has announced to introduce a National Faceless Income Tax Tribunal for the small taxpayers.
- The government has also extended the tax benefits to the senior citizens aged above 75. They nor will not require to file the income tax return.
- New rules have been formulated for the removal of double taxation for NRIs.
- Further, the NRIs have been permitted to establish and operate One Person Companies in India.
- Tax audit limit have been increased from 5 crores to 10 crores.
- The minister announced that, the affordable housing projects will now be able to avail the tax holiday till March 31, 2022.
- It was announced that, the details regarding the capital gains and interest from banks and post offices will be filled in advanced in order to easing the filing of Income Tax Returns.
- Late deposit in the employee’s Provident Fund by the employer will not be allowed as the deduction to the employer.
Announcement regarding the Custom Duty
- The government has announced to reduce the custom duty on copper by 2.5%
- Customs duty on Naptha has also been reduced by 2.5% to encourage the domestic value addition of the chemicals.
- Custom Duty on gold and silver will also be rationalized.
- Custom Duty on imported solar inverters have been increased to 20% from 5%.
- Customs duty of 5% will be imposed on all the nylon products
- Custom duty on cotton have also been increased from 0 to 10% that in turn will help in doubling the farmer’s income.
Further, the finance minister announced that, the reassessment of the tax cases will be opened for 10 years if there is evidence of concealment of income of Rs. 50 lakh or more on a year. In other cases, the reopening of the assessment will be for 3 years.