FM MS NIRMALA SITHARAMAN
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UNION BUDGET 2022
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UNION BUDGET2022 - FOR FY 2022-23
UNION BUDGET 2022 - PRESENTED ON 1ST, FEBRUARY
UNION BUDGET 2022 - HIGHLIGHTS : NO CHANGE IN INCOME TAX SLABS / RATES
01.02.2022
1. Finance Minister Ms Nirmala Sitharaman presented the Union budget for the next financial year 2022-23 ( April 2022 to March 2023 to the parliament today morning
2. She says " Indian growth to be at 9.2 % , highest in the world ".
3. Strategic Sale of Air India has been completed . The strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been selected. The public issue of the LIC is expected shortly. Others too are in the process for 2022-23.
4. PM Gatishakthi will fuel the economic growth
Roads ,Railways ,Airports , Ports , Mass transport , Waterways , Logistics infra are the components of Gathishakthi
5. FM outlines Health management scheme , Nari shakthi programme
6. Anganwadis to be strengthened .
7. North East India will be developed - Rs 1,500 crore to be spent
8. Aim to boost Digital banking . Fintech ideas - 75 Digital banking units to be opened
9. 1486 Union Laws repealed .
10. E-Passports will be rolled out in Fy 22-23
11. 3 lakh crores for development of hospiytality sector
12. 60 lakh jobs will be created in next 5 years .
13. 1460 crores for Hydro & solar projects .
14. End to end E-Bill system will be introduced
15. 48000 crores for Housing schemes
16. All post offices will be connected digitally
17. 5G spectrum will be auctioned in 2022
18. CAPITAL EXPENDITURE OUTLAY WILL BE 7.50 LAKH CRORES FOR FY 22-23
-An increase of 35 % over the last year the outlay for capital expenditure in the Union Budget is once again being stepped up sharply by 35.4 per cent from ` 5.54 lakh crore in the current year to ` 7.50 lakh crore in 2022-23. This has increased to more than 2.2 times the expenditure of 2019-20. This outlay in 2022-23 will be 2.9 per cent of GDP.
19. Green bonds will be issued
20 . Digital Currency will be introduced by using blockchain model and will issued by RBI in fy 22-23 .
21 . Income Tax payers can submit updated return till completion of of 2 years of the relevant year after submission on payment of additional tax
22. Direct tax system will be reformed .
23. Crypto currencies to be taxed at 30 % of income , without allowing any rebates on any expenditure except cost of acquisition .
24. Cryptocurrency losses cannot be adjusted against any other income .
25. Tax to be paid by the receiver of Cryptocurrencies as gift .
( FM on virtual currencies " Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Further, loss from transfer of virtual digital asset cannot be set off against any other income. Further, in order to capture the transaction details, I also propose to provide for TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold. Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient. " )
FISCAL MANAGEMENT :
Coming to the Budget Estimates, the total expenditure in 2022-23 is estimated at ` 39.45 lakh crore, while the total receipts other than borrowings are estimated at ` 22.84 lakh crore. 118. The revised Fiscal Deficit in the current year is estimated at 6.9 per cent of GDP as against 6.8 per cent projected in the Budget Estimates. The Fiscal Deficit in 2022-23 is estimated at 6.4 per cent of GDP, which is consistent with the broad path of fiscal consolidation announced by me last year to reach a fiscal deficit level below 4.5 per cent by 2025-26. While setting the fiscal deficit level in 2022-23 .
Finance Minister Ms Nirmala Sitharaman didn't announce any change in income tax slabs and rates for individual in the year Fy 22-23
TO READ COMPLETE BUDGET SPEECH , CLICK HERE
01.02.2022
1. Finance Minister Ms Nirmala Sitharaman presented the Union budget for the next financial year 2022-23 ( April 2022 to March 2023 to the parliament today morning
2. She says " Indian growth to be at 9.2 % , highest in the world ".
3. Strategic Sale of Air India has been completed . The strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been selected. The public issue of the LIC is expected shortly. Others too are in the process for 2022-23.
4. PM Gatishakthi will fuel the economic growth
Roads ,Railways ,Airports , Ports , Mass transport , Waterways , Logistics infra are the components of Gathishakthi
5. FM outlines Health management scheme , Nari shakthi programme
6. Anganwadis to be strengthened .
7. North East India will be developed - Rs 1,500 crore to be spent
8. Aim to boost Digital banking . Fintech ideas - 75 Digital banking units to be opened
9. 1486 Union Laws repealed .
10. E-Passports will be rolled out in Fy 22-23
11. 3 lakh crores for development of hospiytality sector
12. 60 lakh jobs will be created in next 5 years .
13. 1460 crores for Hydro & solar projects .
14. End to end E-Bill system will be introduced
15. 48000 crores for Housing schemes
16. All post offices will be connected digitally
17. 5G spectrum will be auctioned in 2022
18. CAPITAL EXPENDITURE OUTLAY WILL BE 7.50 LAKH CRORES FOR FY 22-23
-An increase of 35 % over the last year the outlay for capital expenditure in the Union Budget is once again being stepped up sharply by 35.4 per cent from ` 5.54 lakh crore in the current year to ` 7.50 lakh crore in 2022-23. This has increased to more than 2.2 times the expenditure of 2019-20. This outlay in 2022-23 will be 2.9 per cent of GDP.
19. Green bonds will be issued
20 . Digital Currency will be introduced by using blockchain model and will issued by RBI in fy 22-23 .
21 . Income Tax payers can submit updated return till completion of of 2 years of the relevant year after submission on payment of additional tax
22. Direct tax system will be reformed .
23. Crypto currencies to be taxed at 30 % of income , without allowing any rebates on any expenditure except cost of acquisition .
24. Cryptocurrency losses cannot be adjusted against any other income .
25. Tax to be paid by the receiver of Cryptocurrencies as gift .
( FM on virtual currencies " Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Further, loss from transfer of virtual digital asset cannot be set off against any other income. Further, in order to capture the transaction details, I also propose to provide for TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold. Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient. " )
FISCAL MANAGEMENT :
Coming to the Budget Estimates, the total expenditure in 2022-23 is estimated at ` 39.45 lakh crore, while the total receipts other than borrowings are estimated at ` 22.84 lakh crore. 118. The revised Fiscal Deficit in the current year is estimated at 6.9 per cent of GDP as against 6.8 per cent projected in the Budget Estimates. The Fiscal Deficit in 2022-23 is estimated at 6.4 per cent of GDP, which is consistent with the broad path of fiscal consolidation announced by me last year to reach a fiscal deficit level below 4.5 per cent by 2025-26. While setting the fiscal deficit level in 2022-23 .
Finance Minister Ms Nirmala Sitharaman didn't announce any change in income tax slabs and rates for individual in the year Fy 22-23
TO READ COMPLETE BUDGET SPEECH , CLICK HERE
Finance Minister Ms Nirmala Sitharaman is going to present the Union budget for the Financial year 2022-23 to the parliament on 1st, February 2022 at 11.00 am . The budget will be presented in paperless form . It will be her fourth presentation of a budget .
Union Budget 2022-23 will be available on Mobile App after it is presented in Parliament .
“Union Budget Mobile App” will provide access to Union Budget information to all stakeholders . The
Mobile App is bilingual (English & Hindi) and is available on both Android and iOS platforms
Mobile App can be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in)
All Budget documents will also be available for download on Union Budget Web Portal
Source : PIB Press release
NO HALWA CEREMONY THIS YEAR :
Dated 28.01.2022 : By tradition , Finance ministry was conducting a Halwa ceremony, marking the final stage of the Budget making process for Union Budget and would be held in North Block of the parliament in the presence of Union Finance Minister Last year the ceremony was held on 23.01.2021 in the presence of FM Smt. Nirmala Sitharaman. The customary Halwa ceremony is performed every year before the “lock-in” process of Budget preparation begins.
However it has been decided to scrap the ceremony this year due to ongoing Pandemic and health safety concerns . Instead sweets have been provided to core staff due for “lock-in” at their work workplace .
Dated 28.01.2022 : By tradition , Finance ministry was conducting a Halwa ceremony, marking the final stage of the Budget making process for Union Budget and would be held in North Block of the parliament in the presence of Union Finance Minister Last year the ceremony was held on 23.01.2021 in the presence of FM Smt. Nirmala Sitharaman. The customary Halwa ceremony is performed every year before the “lock-in” process of Budget preparation begins.
However it has been decided to scrap the ceremony this year due to ongoing Pandemic and health safety concerns . Instead sweets have been provided to core staff due for “lock-in” at their work workplace .
FM MEETS STATE FINANCE MINISTERS :
Dated 30.12.2021 : Today Union Finance Minister Smt. Nirmala Sitharaman chaired the Pre-Budget meeting for the upcoming Union budget with Finance Ministers of all States and Union Territories (with legislature) at Vigyan Bhawan, New Delhi. Along with the FM, Minister of State for Finance Shri Bhagwat Karad , Finance Secretary, Dr T.V. Somanathan , Secretary, DEA, Shri Ajay Seth and Secretary, DFS, Shri Debasish Panda and other senior officials of the Ministry also attending the meeting.
PRE-BUDGET CONSULTATIONS WITH STAKEHOLDERS CONCLUDE :
UPDATE 22.12.2021 :Union Finance Minister Smt. Nirmala Sitharaman held her Pre-Budget consultations with prominent economists via virtual mode today in New Delhi in connection with forthcoming UnionBudget 2022-23. Today she also held meetings with seven stakeholders groups . With these meetings , the pre-budget meetings concluded today .
More than 120 invitees representing 7 stakeholder groups participated in 8 meetings scheduled during this period. The stakeholder groups include representatives and experts from Agriculture and Agro Processing Industry; Industry, Infrastructure and Climate Change; Financial Sector and Capital Markets; Services and Trade; Social Sector; Trade Union & Labour Organization and Economists.
Union Ministers of State for Finance Shri Pankaj Chaudhary and Dr. Bhagwat Kishanrao Karad, Finance Secretary Shri T.V. Somanathan; Secretary, DEA, Shri Ajay Seth; Secretary, DIPAM, Shri Tuhin Kanta Pandey; Secretary, Financial Services, Shri Debashish Panda; Secretary, Corporate Affairs, Shri Rajesh Verma; Secretary, Revenue Shri Tarun Bajaj and senior officers from Ministry of Finance were also present during the meetings. Secretaries of other Ministries/Departments concerned participated through online mode.
To read press release of Finance Minister on the Subject , CLICK HERE
Dated 30.12.2021 : Today Union Finance Minister Smt. Nirmala Sitharaman chaired the Pre-Budget meeting for the upcoming Union budget with Finance Ministers of all States and Union Territories (with legislature) at Vigyan Bhawan, New Delhi. Along with the FM, Minister of State for Finance Shri Bhagwat Karad , Finance Secretary, Dr T.V. Somanathan , Secretary, DEA, Shri Ajay Seth and Secretary, DFS, Shri Debasish Panda and other senior officials of the Ministry also attending the meeting.
PRE-BUDGET CONSULTATIONS WITH STAKEHOLDERS CONCLUDE :
UPDATE 22.12.2021 :Union Finance Minister Smt. Nirmala Sitharaman held her Pre-Budget consultations with prominent economists via virtual mode today in New Delhi in connection with forthcoming UnionBudget 2022-23. Today she also held meetings with seven stakeholders groups . With these meetings , the pre-budget meetings concluded today .
More than 120 invitees representing 7 stakeholder groups participated in 8 meetings scheduled during this period. The stakeholder groups include representatives and experts from Agriculture and Agro Processing Industry; Industry, Infrastructure and Climate Change; Financial Sector and Capital Markets; Services and Trade; Social Sector; Trade Union & Labour Organization and Economists.
Union Ministers of State for Finance Shri Pankaj Chaudhary and Dr. Bhagwat Kishanrao Karad, Finance Secretary Shri T.V. Somanathan; Secretary, DEA, Shri Ajay Seth; Secretary, DIPAM, Shri Tuhin Kanta Pandey; Secretary, Financial Services, Shri Debashish Panda; Secretary, Corporate Affairs, Shri Rajesh Verma; Secretary, Revenue Shri Tarun Bajaj and senior officers from Ministry of Finance were also present during the meetings. Secretaries of other Ministries/Departments concerned participated through online mode.
To read press release of Finance Minister on the Subject , CLICK HERE
PRE -BUDGET CONSULTATIONS START :
Dated 15.12.2021 : Finance Minister Smt. Nirmala Sitharaman will start her Pre-Budget consultations with different stakeholder Groups from today , 15th Dec 2021 in New Delhi in connection with the forthcoming General Budget 2022-23. The meetings will be held virtually. It will be her 1st Pre-Budget consultations for the budget to be presented in the February next year . First meeting , today afternoon , will be with experts of Agriculture and Agro-processing industry
PREBUDGET CONSULTATIONS :
UPDATE 18.12.2021 : Finance Minister Smt. Nirmala Sitharaman continued with her Pre-Budget consultations with different stakeholder Groups today also in connection with the forthcoming General Budget 2022-23. FM chaired 6th Pre-Budget consultations today with representatives of Services Sector including stakeholders from health, education, rural development and water & sanitation sectors in New Delhi, in connection with the forthcoming General Budget 2022-23. Union MoS , Secretary, Ministry of Corporate Affairs, Shri Rajesh Verma and Principal Economic Advisor Shri Sanjeev Sanyal were also present in the meeting .
Today's afternoon session will be with trade unions and labour organisations .
17.12.2021 : Finance Minister Smt. Nirmala Sitharaman continued her Pre-Budget consultations with different stakeholder Groups today also in connection with the forthcoming General Budget 2022-23.
2nd Pre-Budget consultations will be with persons connected with Industry, Infrastructure & Climate Change . 3rd Pre-Budget consultations will be with experts of Financial Sector & Capital Markets . 4th Pre-Budget consultations will be with persons connected with trade and services sector . The meetings will be presided by the Finance Minister . All the meetings are being held virtually.
Union Minister of State for Finance Dr Bhagwat Karad , ; Secretary, DIPAM, Shri Tuhin Kanta Pandey, Secretary, DEA, Shri Ajay Seth and Principal Economic Advisor Shri Sanjeev Sanyal are also present, besides other senior officials .
Dated 15.12.2021 : Finance Minister Smt. Nirmala Sitharaman will start her Pre-Budget consultations with different stakeholder Groups from today , 15th Dec 2021 in New Delhi in connection with the forthcoming General Budget 2022-23. The meetings will be held virtually. It will be her 1st Pre-Budget consultations for the budget to be presented in the February next year . First meeting , today afternoon , will be with experts of Agriculture and Agro-processing industry
PREBUDGET CONSULTATIONS :
UPDATE 18.12.2021 : Finance Minister Smt. Nirmala Sitharaman continued with her Pre-Budget consultations with different stakeholder Groups today also in connection with the forthcoming General Budget 2022-23. FM chaired 6th Pre-Budget consultations today with representatives of Services Sector including stakeholders from health, education, rural development and water & sanitation sectors in New Delhi, in connection with the forthcoming General Budget 2022-23. Union MoS , Secretary, Ministry of Corporate Affairs, Shri Rajesh Verma and Principal Economic Advisor Shri Sanjeev Sanyal were also present in the meeting .
Today's afternoon session will be with trade unions and labour organisations .
17.12.2021 : Finance Minister Smt. Nirmala Sitharaman continued her Pre-Budget consultations with different stakeholder Groups today also in connection with the forthcoming General Budget 2022-23.
2nd Pre-Budget consultations will be with persons connected with Industry, Infrastructure & Climate Change . 3rd Pre-Budget consultations will be with experts of Financial Sector & Capital Markets . 4th Pre-Budget consultations will be with persons connected with trade and services sector . The meetings will be presided by the Finance Minister . All the meetings are being held virtually.
Union Minister of State for Finance Dr Bhagwat Karad , ; Secretary, DIPAM, Shri Tuhin Kanta Pandey, Secretary, DEA, Shri Ajay Seth and Principal Economic Advisor Shri Sanjeev Sanyal are also present, besides other senior officials .
SYNOPSIS OF BUDGET 2021 IS GIVEN BELOW :
HIGHLIGHTS OF THE BUDGET SPEECH DELIVERED IN 01.02.2021 : NO CHANGE IN INCOME TAX RATES / CORPORATE TAX
1. Finance Minister Ms Nirmala Sitharaman has begun her third presentation of union Budget for Fy 2021-22 at the scheduled time of 11.00 am today .
2. Rs 35,000 crores allotted for Covid Vaccine . New health infra scheme with higher outlay of Rs 61,000 crore .
3. capital expenditure up +34.5% against previous year at Rs 5.54 lakh crore.
4. Government to set-up a Development Finance Institution (DFI), with Rs 20,000 crore capitalization .
5. Investor charter to be announced .
6. Insurance act to be amended which allows more FDI in insurance companies .
7. Asset reconstruction company will be started .
8. Consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act will come under security code .
9 . To revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalization to not exceeding Rs 50 lakh to n Rs 2 crore and turnover not exceeding Rs 2 crore to Rs 20 crore.
10 . To privatise 2 Public Sector banks, one general insurance company in FY22: .
11. Rs 20,000 crore for bank recapitalisation .
12. Re-assessment of IT RETURNS ONLY WITHIN 3 YEARS .
13 . FY21 fiscal deficit at 9.5 Rs 35,000 crores .
14. Pensioners who have income of pension and interest only and over 75 years of age are exempt from filing IT returns .
15 . Pre-filled tax forms will include capital gain , dividend income and interest income from banks , post offices .
16. Review of custom duty structure and new system from 01.10.2021 .
17 . Extension of tax holiday for start-ups by one more year.
18 . Govt to extend eligibility of erstwhile tax benefit on home loan up to 31.03 2022
19. To establish a National Faceless Income Tax Appellate Tribunal Centre
TO READ FM'S BUDGET SPEECH IN ENGLISH , CLICK HERE
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INCOME TAX AND UNION BUDGET 2021
02.02.2021 : Finance Minister Ms Nirmala Sitharaman has proposed following changes / measures in the matters concerning Income tax for the Financial year 2021-22 ( AY 2022-23 ) in her budget speech delivered yesterday :
1. INTEREST ON HOUSING LOANS : In the July 2019 Budget, an additional deduction of interest, amounting to Rs 1.5 lakh, for loan taken to purchase an affordable house was allowed which is up to 31.03.2021 . . Now it is proposed to extend the eligibility of this deduction by one more year, to 31st March 2022. The additional deduction of Rs 1.5 lakh shall therefore be available for loans taken up till 31st March 2022, for the purchase of an affordable house
2. FOR SENIOR CITIZENS : Exemption from filing income tax returns for the senior citizens who are 75 years of age and above. and who only have pension and interest income . The paying bank will deduct the necessary tax on their income .
3. PRE-FILLING OF IT RETURNS : in order to ease compliance for the taxpayer, details of salary income, tax payments, TDS, etc. already come pre-filled in income tax returns. To further ease filing of returns, details of capital gains from listed securities, dividend income, and interest from banks, post office, etc. will also be pre-filled.
4. RE-OPENING OF IT RETURNS : Reduce the time-limit for re-opening of assessment of Income Tax returns to 3 years from the present 6 years. In serious tax evasion cases too, only where there is evidence of concealment of income of `50 lakh or more in a year, can the assessment be re-opened up to 10 years. Even this reopening can be done only after the approval of the Principal Chief Commissioner, the highest level of the Income Tax Department.
5. DISPUTE RESOLUTION COMMITTEE : Constitute a Dispute Resolution Committee for small tax payers in the cases of litigation , which will be faceless to ensure efficiency, transparency and accountability. Anyone with a taxable income up to `50 lakh and disputed income up to `10 lakh shall be eligible to approach the Committee. For the purpose Government to establish a National Faceless Income Tax Appellate Tribunal Centre. All communication between the Tribunal and the appellant shall be electronic. Where personal hearing is needed, it shall be done through video-conferencing.
6 . TAX AUDIT : Currently, if turnover exceeds Rs 1 crore, one to get your accounts audited. In the February 2020 Budget, the limit for tax audit was increased to Rs 5 crore for those who carry out 95% of their transactions digitally. To further incentivise digital transactions and reduce compliance burden, now the FM plans to increase this limit for tax audit for such persons from Rs 5 crore toRs 10 crore.
7. ADVANCE TAX PAYMENT ON DIVIDENDS : Dividend is taxable in the hands of shareholders from the FY 20-21 . Now it is proposed to make investors pay the the advance tax liability on dividend income only after the declaration/payment of dividend . for Foreign Portfolio Investors, deduction of tax on dividend income will be at at lower treaty rates .
8. TAX ON ULIP : It is proposed to allow tax exemption for maturity proceed of the ULIP having annual premium up to ` 2.5 lakh. However, the amount received on death shall continue to remain exempt without any limit on the annual premium. The cap of ` 2.5 lakh on the annual premium of ULIP shall be applicable only for the policies taken on or after 01.02.2021. Further, in order to provide parity, the nonexempt ULIP shall be provided same concessional capital gains taxation regime as available to the mutual fund.
9. TAX ON PF CONTRIBUTION : It is proposed to restrict tax exemption for the interest income earned on the employees’ contribution to various provident funds to the annual contribution of Rs 2.5 lakh. This restriction shall be applicable only for the contribution made on or after 01.04.2021.
10. NON-FILING OF IT RETURNS : For the persons in whose case TDS/TCS of Rs 50,000 or more has been made for the past two years and who has not filed return of income, the rate of TDS/TCS shall be at the double of the specified rate or 5%, whichever is higher. This provision shall not be applicable for the transactions where full amount of tax is required to be deducted e.g. salary income, payment to non-resident, lottery, etc.
11. TDS ON PURCHASE OF GOODS : It is proposed to levy a TDS of 0.1% on a purchase transaction exceeding Rs 50 lakh in a year. In
order to reduce the compliance burden, it is also proposed to provide that the responsibility of deduction shall lie only on the persons whose turnover exceeds Rs 10 crore.
12. TAX EXEMPTION ON LTC CASH SCHEME FOR SALARIED EMPLOYEES : In order to provide relief to employees, it is proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring of specified expenditure.
NOTE ; We find that more clarity is needed in case on Tax on PF Contribution . We hope IT Department may clarify on how interest will be segregated between investment before APRIL 2021 and after .
1. INTEREST ON HOUSING LOANS : In the July 2019 Budget, an additional deduction of interest, amounting to Rs 1.5 lakh, for loan taken to purchase an affordable house was allowed which is up to 31.03.2021 . . Now it is proposed to extend the eligibility of this deduction by one more year, to 31st March 2022. The additional deduction of Rs 1.5 lakh shall therefore be available for loans taken up till 31st March 2022, for the purchase of an affordable house
2. FOR SENIOR CITIZENS : Exemption from filing income tax returns for the senior citizens who are 75 years of age and above. and who only have pension and interest income . The paying bank will deduct the necessary tax on their income .
3. PRE-FILLING OF IT RETURNS : in order to ease compliance for the taxpayer, details of salary income, tax payments, TDS, etc. already come pre-filled in income tax returns. To further ease filing of returns, details of capital gains from listed securities, dividend income, and interest from banks, post office, etc. will also be pre-filled.
4. RE-OPENING OF IT RETURNS : Reduce the time-limit for re-opening of assessment of Income Tax returns to 3 years from the present 6 years. In serious tax evasion cases too, only where there is evidence of concealment of income of `50 lakh or more in a year, can the assessment be re-opened up to 10 years. Even this reopening can be done only after the approval of the Principal Chief Commissioner, the highest level of the Income Tax Department.
5. DISPUTE RESOLUTION COMMITTEE : Constitute a Dispute Resolution Committee for small tax payers in the cases of litigation , which will be faceless to ensure efficiency, transparency and accountability. Anyone with a taxable income up to `50 lakh and disputed income up to `10 lakh shall be eligible to approach the Committee. For the purpose Government to establish a National Faceless Income Tax Appellate Tribunal Centre. All communication between the Tribunal and the appellant shall be electronic. Where personal hearing is needed, it shall be done through video-conferencing.
6 . TAX AUDIT : Currently, if turnover exceeds Rs 1 crore, one to get your accounts audited. In the February 2020 Budget, the limit for tax audit was increased to Rs 5 crore for those who carry out 95% of their transactions digitally. To further incentivise digital transactions and reduce compliance burden, now the FM plans to increase this limit for tax audit for such persons from Rs 5 crore toRs 10 crore.
7. ADVANCE TAX PAYMENT ON DIVIDENDS : Dividend is taxable in the hands of shareholders from the FY 20-21 . Now it is proposed to make investors pay the the advance tax liability on dividend income only after the declaration/payment of dividend . for Foreign Portfolio Investors, deduction of tax on dividend income will be at at lower treaty rates .
8. TAX ON ULIP : It is proposed to allow tax exemption for maturity proceed of the ULIP having annual premium up to ` 2.5 lakh. However, the amount received on death shall continue to remain exempt without any limit on the annual premium. The cap of ` 2.5 lakh on the annual premium of ULIP shall be applicable only for the policies taken on or after 01.02.2021. Further, in order to provide parity, the nonexempt ULIP shall be provided same concessional capital gains taxation regime as available to the mutual fund.
9. TAX ON PF CONTRIBUTION : It is proposed to restrict tax exemption for the interest income earned on the employees’ contribution to various provident funds to the annual contribution of Rs 2.5 lakh. This restriction shall be applicable only for the contribution made on or after 01.04.2021.
10. NON-FILING OF IT RETURNS : For the persons in whose case TDS/TCS of Rs 50,000 or more has been made for the past two years and who has not filed return of income, the rate of TDS/TCS shall be at the double of the specified rate or 5%, whichever is higher. This provision shall not be applicable for the transactions where full amount of tax is required to be deducted e.g. salary income, payment to non-resident, lottery, etc.
11. TDS ON PURCHASE OF GOODS : It is proposed to levy a TDS of 0.1% on a purchase transaction exceeding Rs 50 lakh in a year. In
order to reduce the compliance burden, it is also proposed to provide that the responsibility of deduction shall lie only on the persons whose turnover exceeds Rs 10 crore.
12. TAX EXEMPTION ON LTC CASH SCHEME FOR SALARIED EMPLOYEES : In order to provide relief to employees, it is proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring of specified expenditure.
NOTE ; We find that more clarity is needed in case on Tax on PF Contribution . We hope IT Department may clarify on how interest will be segregated between investment before APRIL 2021 and after .
EARLIER BUDGET PRESENTATION OF MS NIRMALA SITHARAMAN
HIGHLIGHTS OF UNION BUDGET 20-21 PRESENTED BY FM NIRMALA SITHARAMAN
HIGHLIGHTS OF THE PROPOSALS FOR FINANCIAL YEAR 2020-21 IN HER SPEECH
1. Ms Nirmala Sitharaman delivered her second presentation of union Budget for Fy 2020-21 at the scheduled time of 11.00 am on 01.02.2020
2. Allocations : Rs 20,000 crores for renewable energy sector , Rs 1.00 lakh crores for education , Rs 69,000 crores for Health Care sector
3. Tax Payer's charter will be introduced in statute .
4. National recruitment Agency will be instituted for common entrance to bank jobs and non-gazetted posts in the government .
5. FM assures that Depositor's money would be safe .
5. DICGC INSURANCE WILL BE INCREASED TO RS 5.00 LAKHS FROM EXISTING RS 1.00 LAKH
6. Holding Company for LIC will be established via IPO
7. FISCAL DEFICIT FOR 2019-20 ESTIMATED AT 3.8 % AGAINST EARLIER COMMITMENT OF 3.3 %
BUDGET2020 HIGHLIGHTS - INCOME TAX SLABS AND RATES FOR FY 2020-21
DIRECT TAX :
8. SIMPLIFIED INDIVIDUAL TAX REGIME WILL BE INTRODUCED .
PROVIDED YOU FORGO EXEMPTIONS AND RELIEFS ,
9 . NO CHANGE AT 5 % FROM RS 2,50,000 RS 5 .00 LAKHS
10 INCOME TAX AT 10 % BETWEEN 5 LAKHS AND RS 7.5 LAKHS
11 INCOME TAX AT 15 % BETWEEN 7.5 LAKHS AND RS 10 LAKHS
12. INCOME TAX AT 2O % BETWEEN 10 LAKHS AND RS 12.5 LAKHS
13 . INCOME TAX AT 25 % BETWEEN 12.5 LAKHS AND RS 15 LAKHS
( WE ARE AWAITING FOR CLARIFICATION ON WHICH EXEMPTION AND RELIEF TO BE FOREGONE )
14. PRE-FILLED ITR FORMS WILL BE MADE AVAILABLE
15. Dividend Distribution Tax removed , but dividends to be added to individual incomes
16. PAN will be allotted on line on the basis of Aadhaar
17 . IF YOU DON'T WANT FORGO RELIEFS AND EXEMPTIONS , YOU CAN CONTINUE WITH OLD SLABS .
TO READ FINANCE BILL , CLICK HERE TO READ FM SPEECH , CLICK HERE
FOR KEY FEATURES OF THE BUDGET , CLICK HERE
8. SIMPLIFIED INDIVIDUAL TAX REGIME WILL BE INTRODUCED .
PROVIDED YOU FORGO EXEMPTIONS AND RELIEFS ,
9 . NO CHANGE AT 5 % FROM RS 2,50,000 RS 5 .00 LAKHS
10 INCOME TAX AT 10 % BETWEEN 5 LAKHS AND RS 7.5 LAKHS
11 INCOME TAX AT 15 % BETWEEN 7.5 LAKHS AND RS 10 LAKHS
12. INCOME TAX AT 2O % BETWEEN 10 LAKHS AND RS 12.5 LAKHS
13 . INCOME TAX AT 25 % BETWEEN 12.5 LAKHS AND RS 15 LAKHS
( WE ARE AWAITING FOR CLARIFICATION ON WHICH EXEMPTION AND RELIEF TO BE FOREGONE )
14. PRE-FILLED ITR FORMS WILL BE MADE AVAILABLE
15. Dividend Distribution Tax removed , but dividends to be added to individual incomes
16. PAN will be allotted on line on the basis of Aadhaar
17 . IF YOU DON'T WANT FORGO RELIEFS AND EXEMPTIONS , YOU CAN CONTINUE WITH OLD SLABS .
TO READ FINANCE BILL , CLICK HERE TO READ FM SPEECH , CLICK HERE
FOR KEY FEATURES OF THE BUDGET , CLICK HERE
New Updated Article
TAX PLANNING FOR FY 2021-22 ( AY 2022-23 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
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TAX PLANNING FOR FY 2021-22 ( AY 2022-23 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
CLICK HERE TO READ
REVISED UNION BUDGET 2019 -20
HIGHLIGHTS OF REVISED BUDGET PROPOSAL FOR FY 20219-20 MADE BY MS NIRMALA SEETHARAMAN , NEW FM ON 05.07.2019
1. FM began her maiden budget speech at 11.00 am .
2. Indian economy will be $3 trillion economy this year itself
3. Public - private partnership for improving rail tracks .
4. By 2022 , all rural houses will have electric connection and LPG connection .
5. Labour laws to be transferred to 4 labour codes .
6. Rs 70,000 crores capital infusion for PSBs .
7. RBI will be regulator of housing finance sector instead of NHB
8 Rs 1.05 lakh crore will be disinvested in FY 2019-20
9 . Corporate tax at 25 % for companies with turnover less than Rs 400 crores
10. Rs 1.5 lakhs of Income tax exempted on interest on loan for EV
11. PAN and Aadhaar will be interchangeable
12. Rs 1.5 lakhs of Income tax additionally exempted on interest on housing loan under affordable housing costing up to Rs 45 lakhs ( making it total of Rs 3.5 lakhs )
13. Excise Duty on Fuels like petrol and Diesel hiked by Rs 1 per litre
14. No change in Income tax slabs
15 . Custom Duty om Gold and Jewelry increased from 10 % to 12.5 %
16 . 2 % TDS levy on cash withdrawal over Rs 1.00 crore for business payments .
17 . Surcharge on Income tax increased for persons with income above Rs 2 crore pa with 3 % for slab between Rs 2 cr to Rs 5 .00 cr and 7% beyond .
18 . MDR charges to be waived for cashless payments
19. Aadhaar Cards for NRIs on arrival in India
TO READ COMPLETE SPEECH , CLICK HERE
2. Indian economy will be $3 trillion economy this year itself
3. Public - private partnership for improving rail tracks .
4. By 2022 , all rural houses will have electric connection and LPG connection .
5. Labour laws to be transferred to 4 labour codes .
6. Rs 70,000 crores capital infusion for PSBs .
7. RBI will be regulator of housing finance sector instead of NHB
8 Rs 1.05 lakh crore will be disinvested in FY 2019-20
9 . Corporate tax at 25 % for companies with turnover less than Rs 400 crores
10. Rs 1.5 lakhs of Income tax exempted on interest on loan for EV
11. PAN and Aadhaar will be interchangeable
12. Rs 1.5 lakhs of Income tax additionally exempted on interest on housing loan under affordable housing costing up to Rs 45 lakhs ( making it total of Rs 3.5 lakhs )
13. Excise Duty on Fuels like petrol and Diesel hiked by Rs 1 per litre
14. No change in Income tax slabs
15 . Custom Duty om Gold and Jewelry increased from 10 % to 12.5 %
16 . 2 % TDS levy on cash withdrawal over Rs 1.00 crore for business payments .
17 . Surcharge on Income tax increased for persons with income above Rs 2 crore pa with 3 % for slab between Rs 2 cr to Rs 5 .00 cr and 7% beyond .
18 . MDR charges to be waived for cashless payments
19. Aadhaar Cards for NRIs on arrival in India
TO READ COMPLETE SPEECH , CLICK HERE
Union Budget 2019-20: Press Conference by Finance Minister Nirmala Sitharaman & MoS Anurag Thakur will be on 05.07.2019 at 2.00 PM
HIGHLIGHTS OF THE BUDGET PROPOSALS PRESENTED BY MR PIYUSH GOYAL ON 01.02.2019
To read Budget Proposals of Earlier years , CLICK HERE
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TO KNOW ABOUT TAX ON RETIREMENT BENEFITS , CLICK HERE
TO KNOW ALL ABOUT IT RETURNS , CLICK HERE
HOW TO LINK AADHAAR TO PAN ? CLICK HERE
PLAN YOUR FINANCE PRUDENTLY . For Financial Planning , CLICK HERE
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