Page 35 - DHC Budget Book 2021-22 Final
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2016 to 31-03-2021 were eligible for Tax holiday u/s 80-IAC. Such period for incorporation has been extended by one more year to 31-03-2022. To incentivise investment in eligible start-up, time limit for capital gain exemption u/s 54GB has also been extended by one year from 31-03- 2021 to 31-03-2022.
Tax holiday u/s 80-IBA to be available for affordable housing projects approved by the competent authority upto 31-03-2022 instead of 31-03-2021. Further, Sec. 80-IBA amended w.e.f. AY 2022-23 to expand its scope to cover affordable rental housing projects as well to be notified by CG.
Notice u/s 142(1) requiring furnishing of return of income or any information or production
of documents issued by AO only can now be issued in automated manner by any income tax authority
W.e.f. 01-04-2021, time limit for issuing notice u/s 143(2) has been reduced from 6 months to 3 months from the end of the FY in which return of income is furnished. Time limit u/s 153 for completion of scrutiny assessment [u/s 143(3)] and best judgement assessment [u/s 144] for AY 2021-22 onwards reduced to 9 months from existing 12 months from the end of relevant Assessment Year.
W.e.f. 01-07-2021, for all assessees (excluding non-resident not having PE in India) having TDS and TCS of H 50,000 or more in each of two preceding previous years and not filed their return of income shall be subject to TDS/TCS rates being higher of 5% or twice the applicable TDS/TCS rate under newly inserted Sec. 206AB and Sec. 206CCA respectively. In case such assessee is not having PAN, TDS would be @20% as per Sec. 206AA.
Provisional attachment u/s 281B can be made by the AO also during the pendency
of proceedings for imposition of penalty u/s 271AAD for false entry or entry omitted in the books where likely aggregate penalty exceeds H 2 Crs.
General and Administrative
Hitherto, assessment and appellate proceedings before CIT(Appeals) were under faceless mechanism. Such scheme has been extended
to appellate proceedings before Income Tax Appellate Tribunal (ITAT) as well. National Faceless Income-tax Appellate Tribunal Centre shall be set up. Wherever personal hearing
is needed, it shall be done through video conferencing.
Income-Tax Settlement Commission (ITSC) is proposed to be discontinued w.e.f. 01-02-2021 and consequently, one or more Interim Boards
is proposed to be constituted for settlement of pending applications. CG to notify a new scheme for settlement of pending applications by Interim Board to eliminate the interface between the Board and assessee to the extent technologically feasible.
Authority for Advance Ruling (AAR) shall be replaced by the ‘Board for Advance Rulings’ from a notified date. Unlike rulings pronounced by
the AAR, the rulings by the Board for Advance Rulings shall not be binding on the applicant or the Department. Appeals can be filed both by the assessee and Department before HC.
Dispute Resolution Committee u/s 245MA constituted to resolve disputes, to reduce
or waive penalty and grant immunity from prosecution in case of small and medium taxpayers whose returned income is H 50 lacs
or less and aggregate amount of variation proposed in the order is H 10 lacs or less. Same shall not apply to assessees in respect to whom order of detention, prosecution has been passed under specified laws or where such order pertains to search and survey cases.
Competent authority u/s 5(1) of Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 has now been appointed
as the Adjudicating authority for Prohibition of Benami Property Transactions Act, 1988 [PBPT Act]. Time limit for passing order by Adjudicating authority has also been extended to 30-09-2021 where such time limit is expiring during the period from 01-07-2021 to 29-09-2021.
W.r.e.f. 01-06-2016, under Income Declaration Scheme, 2016, there shall be no interest granted to assessee on the refund amount.
Direct Tax Vivad se Vishwas Act, 2020 amended w.r.e.f. 17-03-2020 to exclude cases arising out of or pursuant to order passed by Settlement Commission from its ambit.
Content
Budget Snapshots Basic 33
