Wednesday, March 3, 2021
  • About
  • Advertise
  • Careers
Scoftware Magazine
  • Home
  • Politics
  • Business
  • Culture
  • Opinion
  • Lifestyle
  • Entertainment
  • Login
No Result
View All Result
Scoftware Magazine
Home Business

Union Budget 2021: Nirmala Sitharaman offers carrot and stick approach to raise revenue, soothe taxpayers

Jaleel M. by Jaleel M.
February 2, 2021
in Business
0
Union Budget 2021: Nirmala Sitharaman offers carrot and stick approach to raise revenue, soothe taxpayers
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter


Taxpayers can also draw solace from the fact that the Budget has reduced the period for issuing tax notices by the department for a particular transaction to four years from seven years earlier

Related posts

Mukesh Ambani climbs to eight spot on Hurun Global Rich List, 40 Indians enter billionaire’s club

Mukesh Ambani climbs to eight spot on Hurun Global Rich List, 40 Indians enter billionaire’s club

March 3, 2021
Sensex reclaims 50,000-benchmark amid hectic buying in IT, auto, FMCG sectors; Nifty ends in green

Sensex reclaims 50,000-benchmark amid hectic buying in IT, auto, FMCG sectors; Nifty ends in green

March 2, 2021

Union Budget 2021: Nirmala Sitharaman offers carrot and stick approach to raise revenue, soothe taxpayers

Representational image. MoneyControl

In line with expectations, considering the pandemic pain, there were no tax sops in the form of exemptions or rebates that Budget 2021 offered, but instead relaxations were given in compliance for senior citizens and incentives for digital transactions in the fine print.

To begin with, the Budget has proposed a constitution of a Dispute Resolution Committee who can be approached by small taxpayers having a taxable income up to Rs 50 lakh and disputed income up to Rs.10 lakh through faceless (online window) to ensure efficiency, transparency and accountability. This would facilitate in reducing litigation cost and time of small taxpayers.

The Budget has also exempted resident senior citizens above 75 years of age, who only have a pension and interest income (in the same bank) and usually pay tax in the form of TDS (tax deducted at source) from filing their Income Tax Returns.

Further, to safeguard welfare funds of employees (like employee Provident funds, superannuation funds, other social security funds), deductions of late deposit of employees’ contributions will not be allowed as the expense in the hands of the employer.

To further incentivise digital transactions by replacing cash transactions and reducing compliance burden, persons having turnover up to Rs 10 crores will not be required to get accounts audited under Income Tax Act where cash involved is less than 5 percent of total receipts/payments.

Among other changes, the Budget gave its proposal to the announcement made last year to boost the real estate industry. As per the proposal, an individual buying a home or a developer selling it between 12 November, 2020 and 30 June, 2021 will not have to pay tax on the difference between stamp duty value and consideration paid to the builder, if consideration does not exceed Rs 2 crore and the difference is not more than 20 percent.

Taxpayers can also draw solace from the fact that the Budget has reduced the period for issuing tax notices by the department for a particular transaction to four years from seven years earlier (i.e. 3 years/6 years from the end of assessment year, respectively). By which, the budget proposal has reduced the uncertainty and anxiety among the taxpayers, unless the transaction value for escaping income is over Rs 50 lakhs. The reason for reducing the period was attributed to technology advancement that enabled getting huge data within a very short period of time. Hence, no notice can be issued after four years in such cases.

The Budget has also empowered the tax official to attach property of the taxpayer in cases of false entry made or omitted in the books of accounts including fake invoices to safeguard collection of penalty initiated on such taxpayers.

It has also proposed a faceless appeal scheme with the aim of reducing litigation cost and to use resources (i.e. judges of Income Tax Appellate Tribunal) in the best way and reduced the last date of filing belated and revised return to 31st December of the assessment year.

Given the bits and pieces changes made, the Budget has made an effort to ease the tax compliance amid the pandemic pain.

The writer is Associate Director (Direct Tax), SK Patodia Associates

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.



Source link

Previous Post

Union Budget 2021: Govt’s great land sales idea needs a process-oriented transparent approach

Next Post

FM’s interview to Network18: Nirmala Sitharaman reveals NDA govt’s macroeconomic philosophy and road ahead

Next Post
FM’s interview to Network18: Nirmala Sitharaman reveals NDA govt’s macroeconomic philosophy and road ahead

FM's interview to Network18: Nirmala Sitharaman reveals NDA govt's macroeconomic philosophy and road ahead

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

RCB Can Be “One Of The Big Beneficiaries” With IPL Taking Place In UAE: Aakash Chopra

RCB Can Be “One Of The Big Beneficiaries” With IPL Taking Place In UAE: Aakash Chopra

7 months ago
JC STEWART SHARES VIDEO FOR ‘I NEED YOU TO HATE ME’

JC STEWART SHARES VIDEO FOR ‘I NEED YOU TO HATE ME’

9 months ago
Union Budget 2021: Allocation of Rs 1,500 cr to boost digital payments will take fintech sector a higher notch

Union Budget 2021: Allocation of Rs 1,500 cr to boost digital payments will take fintech sector a higher notch

4 weeks ago
Quique Setien Plays Down Talks Of Unrest In Barcelona Dressing Room

Quique Setien Plays Down Talks Of Unrest In Barcelona Dressing Room

8 months ago

FOLLOW US

  • 81 Followers
  • 29.5k Followers
  • 108k Subscribers

BROWSE BY CATEGORIES

  • Business
  • Culture
  • Entertainment
  • Lifestyle
  • Music
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Tech
  • Travel
  • World News

BROWSE BY TOPICS

2018 League Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan Istana Negara Market Stories National Exam Visit Bali

POPULAR NEWS

  • Kris Jenner Spills Details About Her Sex Life With Corey Gamble: Watch

    Kris Jenner Spills Details About Her Sex Life With Corey Gamble: Watch

    0 shares
    Share 0 Tweet 0
  • Common Saints Release New Single “Idol Eyes”

    0 shares
    Share 0 Tweet 0
  • Sam Heughan & Graham McTavish Are Men in Kilts for Travel Show

    0 shares
    Share 0 Tweet 0
  • KRISTIN LASH & JAKOB GREY Team Up On “Sleeping With The Lights On”

    0 shares
    Share 0 Tweet 0
  • A Blackhat Hacker Durgesh Singh Kushwah Tells Us All!

    0 shares
    Share 0 Tweet 0
  • About
  • Advertise
  • Careers

© 2020 Scoftware.com

No Result
View All Result
  • Home
  • Politics
  • Business
  • Culture
  • National
  • Sports
  • Lifestyle
  • Travel
  • Opinion

© 2020 Scoftware.com

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Terms and Conditions - Privacy Policy