Bokaro: There are some good changes in the Union Budget 2021, no doubt about that. But it is not as dynamic a budget as people were expecting. According to the union finance minister, Nirmala Sitharaman, Budget 2021 proposals rest on six pillars which are Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, and Minimum Government, and Maximum Governance.
A few well-known chartered accountants and financial experts of Bokaro shared their analysis of the Union Budget 2021:
Prominent charted accountant- Jaishankar Jaipuriar:
>As a whole, the budget in the view of income tax is a relaxation for lower middle class and senior citizens. Also, it is good for a reduction in corruption in the case of different assessments and litigation proceedings. There is no change in tax slab for all the persons. There is no tax on dividend income. The incentive to startup- Tax Holidays. The facility of pre-filing of returns such as salary, tax payments, TDS, capital gains dividend income, etc.
Charted Accountant – Gaurav Murarka:
>This Budget delivered on many parameters without restoring to higher taxes. The government mainly focused on growth by spending on infrastructure, healthcare, and rural India with a special focus on MSME and startups.
Cost Accountant – Vivek Ranjan Jaiswal :
>Senior citizens 75 years and above are relaxed to file ITR. This has no impact on the filing of returns as statistics of filing of returns in this category of assessee was very low.
>Limit on Section 10(23C) has been extended to Rs.5 Crore from Rs. 1 Crore. This is a good move but no change in Tax Slabs. More Allocation for the new health sector is a welcome to move.
Charted Accountant- Sidharth Jain
> Senior citizens 75 years and above are relaxed to file an income tax return if they earn Income on Pension and Interest. This has no impact on the filing of returns as statistics of filing of returns in this category of assessee was very low. So no impact.
> Reassessment of Income tax returns has been limited to 3 years from 6 years. This is a welcome move.
> Appeals at ITAT has been made online. This is a debatable topic as these will have pros and cons.
> Tax Audit Limit has been extended to Rs. 10 Crore if 95% of the transaction is digital in nature. This can be welcomed as it will boost digital transactions.
> The limit on Section 10(23C) has been extended to Rs.5 Crore from Rs. 1 Crore. This is a welcome move as a requirement of Registration U/s 12AA of the IT Act, 1961 will not be required in such cases.
> The most important change as in my opinion is “Late deposit of employee contribution of PF will now be not allowed as a deduction”. In this case, many of the assessee will be helpless as sometimes due to unavoidable circumstances the payment of PF & ESI were late and thereafter relying on various High Court Judgements they were getting relief but now it has been specifically said that Payment should be as per the relevant act i.e. PF & ESI act, else it will be added back to the total income of the assessee.
> GST audit has been scrapped. This as in my opinion is not a welcome move as Government has removed the checkpoint and now this may lead to various other issues.