Page 34 - DHC Budget Book 2021-22 Final
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W.e.f. 01-04-2021, time limit for issuing intimation u/s 143(1) has been reduced from 12 months to 9 months from the end of the FY in which return of income is furnished.
Sec. 143(1) has been expanded to
make adjustment for increase in income reported in tax audit report but not considered in computing total income and
make disallowance of deduction under any provisions of part C of Chapter VI-A if the return of income has been furnished beyond the due date specified u/s 139(1).
New Sec. 194Q has been inserted to provide for
TDS @ 0.1% w.e.f. 01-07-2021 on purchase of
goods of value or aggregate value exceeding H
50 lacs in a Previous Year by the buyer whose
total sales/turnover from business exceed H 10
Crs. during the preceding year. Consequently,
TCS provisions u/s 206C(1H) shall not be applicable on transactions subject to TDS
u/s 194Q.
W.e.f. AY 2021-22, no interest u/s 234C on
shortfall in advance tax due to under estimation
of dividend income except deemed dividend
referred in Sec. 2(22)(e) provided appropriate advance tax is paid in subsequent instalments.
Sec. 2(48) defining zero coupon bond amended to enable Infrastructure Debt Fund notified u/s 10(47) to issue such bonds. Income from such bonds not liable to TDS u/s 194A.
Exemption u/s 10(23C)(iiiad) & (iiiae) is available provided that the annual receipts of any exempt institution did not exceed H 1 Cr. In order to provide benefit to small trusts and institutions,
it has been proposed that the exemption shall be available, if annual receipts of the person claiming exemption from all institutions specified in Sec.10(23C) (iiiad) & (iiiae) does not exceed H 5 Crs. in aggregate.
To avoid double counting while calculating application or accumulation of income in case of a charitable trust u/s 11 & 12 and institutions referred to in sub-clause (iiiad) & (iiiae) of clause in Sec.10(23C), among others, it has been proposed that :
INDIA BUDGET 2021-22
Voluntary contributions for corpus shall
be exempt, only if invested or deposited in
32 Building a Resilient and Confident India
prescribed modes maintained specifically for such corpus.
Application out of above voluntary contributions for corpus shall not be considered as application of income. If the above applied corpus is replenished out
of income in subsequent year by way of investment or deposit in prescribed modes maintained specifically for corpus, same would be treated as application of income.
Application out of loans and borrowings to be allowed as application of income in the year of repayment if repayment is out of income of that year.
Calculation of income to be applied or accumulated during the year shall be made without set off of any excess application of income for earlier year.
Dividend distributed by a Special Purpose Vehicle to a business trust, being exempt u/s 10(23FC), excluded from purview of TDS u/s 194. Central Government authorized to notify other persons not liable to TDS on dividend received.
Safe harbour limit in respect of sale of residential unit by real estate developers u/s 43CA enhanced from 10% to 20% w.e.f. AY 2021-
22, provided sale is made as part of first time allotment to any person during 12-11-2020 to 30-06-2021 and consideration does not exceed
H 2 Crs. Safe harbour limit also enhanced in Sec. 56(2)(x) for providing benefit to the buyers. Press release dated 13-11-2020 has been enacted by above amendment.
Hitherto, Sec. 45(4) provided for capital gain
on transfer of ‘capital asset’ at the time of dissolution or reconstitution of the firm, AOP or BOI. Now, Sec. 45(4) has been substituted w.e.f. AY 2021-22 to charge capital gain on distribution of capital asset which represents capital account balance. Further new Sec. 45(4A) has been inserted to charge capital gain also on transfer of money or any asset other than capital asset in excess of capital account balance. Further, while computing capital gain, capital account balance of the partner(s) shall exclude any revaluation or self-generated asset including goodwill.
Eligible start-up incorporated between 01-04-
