Page 86 - DHC Budget Book 2021-22 Final
P. 86
Faceless Appeals are indeed a revolutionary and path-breaking initiative of the Government,
aimed at reforming and overhauling the
tax administration system and curbing the
undesirable practices prevailing in the system, by eliminating the personal interface between the assessee and the appellate authority.
Vide Finance Act, 2020, TCS provision u/s 206C(1H) was introduced w.e.f. 01-10-2020 wherein the seller was required to collect tax at source @ 0.1% at the time of receipt, from the purchaser on sale of any goods of the value or aggregate of such value exceeding H 50 Lacs.
It is now proposed to insert a new Sec. 194Q w.e.f. 01-07-2021 to provide for TDS @ 0.1% on purchase of goods from a resident seller of the value or aggregate value exceeding H 50 Lacs in a PY by a buyer whose total sales/turnover from business exceed H 10 Crs. during the preceding PY.
The provision of this section would not apply on such class of buyers which may be notified by
Second proviso to Sec. 206C(1H) provides
that TCS shall not be applicable if the buyer is liable to deduct tax at source under any other provision of the Act on the goods purchased by him. Consequently, TCS provisions u/s 206C(1H) shall not be applicable on transactions subject to TDS u/s 194Q
INDIA BUDGET 2021-22
Difficulty may arise in disposal of complex and voluminous appeals wherein not getting the opportunity of personal/virtual hearing may lead to communication gaps and affect the appellants right to be heard effectively.
CG. Further, it shall not apply to a transaction where any other provision of TDS or TCS [other than TCS u/s 206C(1H)] is applicable to it.
Consequential amendment has been proposed in Sec. 206AA by inserting second proviso to provide for TDS u/s 194Q @ 5% if the seller fails to furnish PAN to the buyer.
Comments
7.10
TDS on purchase of goods [Sec. 194Q & Sec. 206AA] ] [w.e.f. 01-07-2021]
Sec. 80-IAC provides for 100% deduction of
the profits and gains derived from an eligible business by an eligible start-up for 3 consecutive AYs, at the option of the assesse, out of 10
years beginning from the year in which it is incorporated, subject to the condition specified therein.
for assessee to be eligible start-up is it should be incorporated on or after 01-04-2016 but before 01-04-2021.
In order to provide tax relief to new entrepreneurs and innovators, it is proposed to extend the outer date of incorporation to 01-04- 2022, to claim deduction u/s 80-IAC.
One of the condition [Explanation to Sec. 80-IAC]
7.12 Capital Gains exemption on investment in Startups extended to 31-03-2022 [Sec. 54GB]
7.11 Extension of time limit for claiming Tax Holiday by eligible start-ups [Sec. 80-IAC] [w.r.e.f. AY 2021-22]
[w.r.e.f.AY 2021-22]
Sec. 54GB provides exemption from the capital gain tax arising from transfer of long term capital asset being a ‘residential property’, if the sale proceeds amount is invested in subscription
of the equity shares of the ‘eligible company’, subject to certain conditions specified therein.
As per proviso to Sec. 54GB(5), if the sale proceeds are invested in eligible start-ups the
exemption would be available on transfer of residential property made till 31-03-2021.
In order to promote start-ups and boost investment in eligible start-ups, the time limit for transfer of residential property in order to invest in eligible startups is proposed to be extended till 31-03-2022.
84 Building a Resilient and Confident India
