Page 33 - DHC Budget Book 2021-22 Final
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Sec. 10(50) amended to provide that the exemption shall be available in respect of income arising from any e-commerce supply or services made or provided or facilitated on or after 01-04-2020 instead of 01-04-2021.
Other Relevant Proposals
Sec. 32 read with Sec. 2(11) amended w.e.f.
AY 2021-22 to exclude Goodwill from ambit
of intangible assets on which depreciation is allowable. Sec. 55 also amended to provide that cost of acquisition of Goodwill would be the purchase price as reduced by the depreciation availed till AY 2020-21. Manner for computation of capital gain u/s 50 on such Goodwill shall be prescribed.
W.e.f. AY 2021-22, definition of ‘Slump sale’ u/s 2(42C) amended to include transfer of one or more undertakings by any means including exchange, relinquishment etc. as provided in Sec. 2(47).
Threshold limit for Tax Audit u/s 44AB enhanced from H 5 Crs. to H 10 Crs. for person carrying on business, if his receipts and payments in cash during the year does not exceed 5% of total receipts and payments respectively.
W.e.f. AY 2021-22, employee’s contribution to provident, superannuation or any other welfare funds shall be allowed as deduction u/s 36(1) (va) only if it is deposited on or before the due date as specified under relevant laws. Benefit of such allowance on depositing within due date of filing return of income as provided in Sec. 43B has been done away with.
New procedure of reassessment prescribed by substituting present Sec. 147, 148, 149 & 151 with new provisions w.e.f. 01-04-2021. The major amendments, among others, includes the following
AO is now mandatorily required to have information either as per risk management strategy flagged by the Board or on the basis of objection raised by CAG for initiating any re-assessment proceedings u/s 147.
Sec. 149 amended to reduce timeline for issuing notice u/s 148 to a period of 3 years instead of 4 years/6 years in general cases. Further, time limit of 10 years has been prescribed if income escaping assessment, represented in the form of asset is likely to exceed H 50 lacs or more for the relevant year. Separate provisions of reopening till 16 years, where income in relation to asset located outside India has escaped assessment has been deleted.
Cases of Search u/s 132 or 132A, Survey
u/s 133A, or requisition cases initiated or conducted, on or after 01-04-2021 shall
now also be covered under re-assessment proceedings u/s 148. Sec. 153A & 153C
has been amended so as to apply only in relation to search initiated u/s 132 or books of accounts requisitioned u/s 132A on or before 31-03-2021.
W.e.f. AY 2021-22, due date for filing belated and revised return of income for all assessees modified to 31st December from existing due date of 31st March of the relevant Assessment Year.
Content
Budget Snapshots Basic
