From income tax to change in customs duty: Budget 2021 announcements in 10 points

“On the direct tax front, the FM has given great relief by not increasing the rate. For the first time, the taxpayers may not complain for not reducing the rates and appreciate for maintaining the rates given the extent of fiscal deficit. The exemption from filing ITRs for senior citizens with only pension and interest income is definitely welcome. The increase in tax audit limit of ₹5 crore to ₹10 crore for businesses with digital transactions. The increase in time limit for affordable housing projects deduction and additional interest on loan borrowed for affordable housing will compensate the time lost due to the pandemic. In a similar manner extended time has been provided to start-ups on all aspects. The most important relief for all businesses would be the reduction in time limit for reopening of assessment would from 6 to 3 years for normal cases and only in the case of concealment of income of over ₹50 lakh it has been retained at 10 years. This would go long way in boosting investors’ confidence and ensuring tax certainty. In continuing with the reforms, now ITAT appeals have also been made faceless. The other important amendments for the capital market would include no advance tax liability on dividend,” said Divakar Vijayasarathy, Founder & Managing Partner, DVS Advisors LLP.