Union Budget 2021: Understand it completely

Union Budget 2021: Understand it completely 

Like every year, the union government has introduced the budget for the year 2021 in February. This budget will have several changes and multiple schemes for businesses and the common man. The union budget has major 7 parts where you will understand what the advantages and disadvantages of the union budget in your pocket are. 

The budget was announced on 1 February 2021 among the common people by Hon. Finance Minister Mrs. Niramala Sitharaman. The union budgets are divided among these parts, which we will understand clearly. 

  • Provisions applicable to the individuals /HUF/ Small Tax Payers.
  • Provisions related to the filing of return/ tax audit etc.
  • Allocation related to Appeal or any government survey. 
  • Presentation related to TDS / TCS.
  • Plans that are related to real estate. ( for both buyers and sellers)
  • Other Changes related to Income Tax. 
  • Changes in GST. 

Provisions applicable to the individuals/ HUF.

The existing loan under section 80EEA will provide multiple deductions on the loan’s interest, which is opted for residential use. The loan amount must be up to one lakh fifty thousand, sanctioned between 1 April 2019 and 31 March 2021. There are multiple conditions to become eligible for this deduction must have the stamp duty of below 45 Lakh INR. Also, the person must not have any existing property on the date of sanction. 

There will be no interest for the taxpayers under the 234C section who have paid full tax in subsequent tax advancements. These tax deduction exclusions are the number of capital gains, income under the head, “profits and gains on the business operation”—Constitution for the dispute resolution committee for medium taxpayers. Only the taxpayers that have filed the return of rupees ten lakh and below are eligible to be considered by the DRC. 

Provisions related to the filing of return/ tax audit etc.

There will be relaxations on senior citizens who are also paying the tax.

  • If the taxpayer is above 75 years of age in the current session, they don’t have to pay the tax. 
  • The income source must be a pension, and no other income source is exempted in the current tax session. 

Also, normal taxpayers have to audit their accounts if the total sales exceed the turnover of one crore in the current financial session. If the person is professionally verified, he needs to go with all the accounts’ audition sessions. This is proposed to increase the threshold of the taxpayers mentioned above. 

Provisions related to to Appeal/ Assessment/ Penalty/ Survey etc. 

The date to file an income tax return is proposed to be the 31 October of the session, where everyone has to complete their income tax return. If they cannot do so, the revised returns will be reduced by 3 months in the upcoming financial year. 

The belated income tax return (ITR) must be filed prior three months before the end of the relevant assessment year of filing the returns. 

Provisions related to TDS / TCS.

The applicability to get the deducted tax on the taxpayer for the goods is that they are purchasing. If the person (Seller) exceeds ten crore rupees’ annual turnover, then the tax will be discouraged from the government immediately preceding the next financial term. 

The person must pay the tax if buying goods worth 50 lakh INR from the seller in the previous financial year. The plans are not appalled on some of the transactions. 

  • The transaction is eligible for tax deduction under any provision.
  • The transaction in which tax is collected that comes under the provision of 206c other than the transactions occurring in the financial session. 

M/s Dinesh J. Shah & Associates is a practicing CA firm in field of Taxation, GST, Audit, Project Finance and Government Subsidy for more than 20 years. If you need further clarification/query, you can contact us on 9825373707 or mail at info@djshahca.com or officeidk@gmail.com.