The announcements made in the Union Budget especially the relaxation for One person company (OPC) on number of days to 120 from 183 and other conditions will act as an incentive to start business in India opines CA professional.
Coimbatore: Coimbatore based Chartered Accountant and Columnist, G Karthikeyan said," The IMF as well as the Economic Survey have projected a growth rate of 11% for India during the coming fiscal, in the backdrop of the Covid 19 pandemic. It is noteworthy that India is the only country with a double digit growth rate projected for the next year."
"The budget for financial year 2021-22 has a total outlay of Rs 34.83 lakh crores with all round allocation to various sectors. On the tax front it is heartening to note there will be no Covid cess as many expected prior to the budget announcements. However, while many also expected an increase in the basic taxation limit as well as an increase in mediclaim deductible (especially in the light of Covid-19), the same did not materialize."
"On the Income taxprocedural revamp side, faceless assessments have now been extended to apply to the tribunals as well and the time limit for reopening of assessments has been reduced from 6 to 3 years, which is a welcome move. Dispute resolution procedures for small taxpayers have been strengthened."
"The announcement on double taxation relief on pension related income to NRI's will infuse confidence in the minds of Indians who live abroad. The relaxation for One person company (OPC) on the number of days from 120 to 183 and other conditions will act as an incentive to start business in India." He said.
The Southern India Regional Council of The Institute of Chartered Accountants of India, Vice Chairman, CA. K Jalapathi said," No Income tax (I-T) filing for senior citizens above 75 years of age having only pension. This will reduce the tax procedures for senior citizens. The timeline for re-opening of tax returns has been reduced to three years from six years to set up a faceless dispute resolution committee for small taxpayers. Proposed to make I-T Appellate Tribunal Faceless. Tax audit threshold is raised to Rs 10 crore for digital transactions (95% Non - Cash Transactions). Advance tax liability to arise only after payment of dividends this will reduce the interest cost to the taxpayers. Extension of tax holiday on affordable housing loans up to March 22. This will boost the Construction Industry. For Trusts: Educational and Hospital exemption limit is increased from Rs 1 Crore to Rs 5 Crores. Late deposit of employee contribution of PF will now be not allowed as deduction." He said.
"The budget for financial year 2021-22 has a total outlay of Rs 34.83 lakh crores with all round allocation to various sectors. On the tax front it is heartening to note there will be no Covid cess as many expected prior to the budget announcements. However, while many also expected an increase in the basic taxation limit as well as an increase in mediclaim deductible (especially in the light of Covid-19), the same did not materialize."
"On the Income taxprocedural revamp side, faceless assessments have now been extended to apply to the tribunals as well and the time limit for reopening of assessments has been reduced from 6 to 3 years, which is a welcome move. Dispute resolution procedures for small taxpayers have been strengthened."
"The announcement on double taxation relief on pension related income to NRI's will infuse confidence in the minds of Indians who live abroad. The relaxation for One person company (OPC) on the number of days from 120 to 183 and other conditions will act as an incentive to start business in India." He said.
The Southern India Regional Council of The Institute of Chartered Accountants of India, Vice Chairman, CA. K Jalapathi said," No Income tax (I-T) filing for senior citizens above 75 years of age having only pension. This will reduce the tax procedures for senior citizens. The timeline for re-opening of tax returns has been reduced to three years from six years to set up a faceless dispute resolution committee for small taxpayers. Proposed to make I-T Appellate Tribunal Faceless. Tax audit threshold is raised to Rs 10 crore for digital transactions (95% Non - Cash Transactions). Advance tax liability to arise only after payment of dividends this will reduce the interest cost to the taxpayers. Extension of tax holiday on affordable housing loans up to March 22. This will boost the Construction Industry. For Trusts: Educational and Hospital exemption limit is increased from Rs 1 Crore to Rs 5 Crores. Late deposit of employee contribution of PF will now be not allowed as deduction." He said.