This book provides a clause-by-clause analysis of the Finance Bill, 2021. All complex provisions have been explained with illustrations which helps the readers to comprehend the new provisions, in a simplified manner. This book covers analysis on the following:

• Direct Taxes


• Indirect Taxes (Including GST & Customs)


• Corporate Laws

The Present Publication is the Latest Edition, authored by Taxmann’s Editorial Team, with the following coverage:

• Tax Rates


• Profits and Gains from Business or Profession


• Capital Gains


• Other Sources


• Charitable Trusts


• Deductions


• TDS and Advance Tax


• Return of Income


• Assessments


• Appeals and Dispute Resolution


• Miscellaneous


• Amendments Proposed under the GST Laws


• Amendments Proposed under the Customs laws


• Additional Infrastructure and Development Cess


• Amendment under the Central Sales Tax Act


• Amendments under the Customs Tariff Act


• Amendments Proposed under the Corporate Laws

The detailed coverage of the book is as follows:

Tax Rates

• Individuals or HUF opting for section 115BAC


• Individual or HUF not opting for section 115BAC


• Tax rates for AOP/BOI


• Tax rates for Company


• Tax rates for Co-operative Society


• Tax rates for Other Entity


• Surcharge in the hands of the Individual, HUF, AOP, BOI or AJP


• Surcharge in case of any other assessee

Profits and Gains from Business or Profession

• No depreciation to be allowed on Goodwill


• Threshold limit for tax audit in certain cases increased to Rs. 10 crore


• LLPs are not eligible for presumptive taxation scheme under Section 44ADA


• No MAT on dividend income of a foreign company


• No deduction of employee’s contribution to welfare funds if paid after the relevant due dates


• No Equalisation levy on Royalty or FTS


• Inclusive list for the meaning of ‘online sale of goods and provision of services’


• Goods need not be owned or services need not be facilitated by the e-commerce operator


• Curative amendment under section 10(50)


• Adjustment to be made for APA or Secondary Adjustment while re-computing Book Profits of Past Years


• Conversion of Urban Co-operative Bank into Banking Company is tax neutral

Capital Gains

• Extension in the time limit for transfer of residential house property for Section 54GB exemption


• Tax on transfer of a capital asset to partner on dissolution or reconstitution


• Taxation of Unit Linked Insurance Plans (ULIPs)


• Tax incentives for units located in IFSC

Other Sources

• Safe-harbour limit increased in case of transfer of residential property below Stamp Duty Value


• Relief from taxation in respect of income from foreign retirement funds


• Tax on interest on the contribution made to provident fund

Charitable Trusts

• Treatment of application out of loan and borrowings


• Increase in threshold limit for exemption of Trusts [Section 10(23C)]


• Treatment of application out of corpus funds


• Set off & carry forward of past deficit

Deductions

• Extension in the time-limit for sanction of housing loan for deduction under Section 80EEA


• Section 80-IBA deduction to rental housing projects


• Extension in the due date for the incorporation of start-up co. for Section 80-IAC

TDS and Advance Tax

• TDS in case of specified senior citizen


• Advance tax liability on dividend income


• TDS on purchase of goods


• No TDS on dividend distributed by SPV to the business trust


• TDS on income from securities held by FPIs


• Deduction or Collection of tax at higher rates in case of non-filers of return

Return of Income

• Revised time limit to file Belated or Revised Return of Income


• Time limit to file ITR of partners if the firm is liable for TP Audit


• Reduction in the time limit for processing of ITR


• Due date to file the return of spouse of partner


• Notice to file the return of income can be issued by the prescribed authority [Section 142]


• CBDT to relax conditions for defective returns


• Adjustments to be made by CPC while processing of ITR


• Slump sale to include all kinds of transfer

Assessments

• Time-limit to issue notice for Scrutiny Assessment


• New Scheme for Re-Assessment and Search Assessments [Sections 147, 148, 148A, 149, 151, 151A, 153A and 153C]


• Faceless assessment of income escaping assessment [Section 151A]


• Time-limit for completion of Assessment [Section 153]


• Life Cycle of a Return and Completion of Assessment for the Assessment Year 2021-22

Appeals and Dispute Resolution

• Faceless Proceedings before ITAT [Section 255]


• Constitution of Dispute Resolution Committee


• Constitution of the Board for Advance Ruling


• Discontinuance of Settlement Commission

Miscellaneous

• Issuance of Zero-Coupon Bond by Infrastructure Debt Fund


• Provisional attachment of any property of the assessee in Fake Invoice cases


• Definition of the term “Liable to tax”


• Set-off and carry forward of losses in case of disinvestment of public sector companies


• Rationalisation of provisions related to SWF and PF


• Clarification regarding the scope of Vivad Se Vishwas Act, 2020


• No interest on refund of the excess sum paid under IDS


• Exemption for cash allowance received in lieu of LTC

Amendments Proposed under the GST Laws

• Retrospective amendment in the definition of supply to make ‘Principle of Mutuality’ redundant


• Introduction of a new condition for availing Input Tax Credit


• Amendments relating to Zero-rated supply


• No separate filing of Form GSTR 9C; Self-certified Reconciliation Statement


• Interest on Net Cash liability


• Recovery of Tax in respect of transaction declared in Form GSTR 1


• Amendments relating to Detention, Seizure and release of goods & conveyances in transit


• Amendments relating to Confiscation provisions


• Penalty to be deposited before filing an Appeal to Appellate Authority for the detention of Goods/Conveyance


• Making Seizure and Confiscation of goods and conveyances a separate proceeding


• Widening the scope of provisional attachment of property including bank account

Amendments Proposed under the Customs Law

• Conditional Exemptions under Customs to be valid for 2 years


• Show Cause Notices for all fresh inquiries/investigations is to be issued within 2 years


• Filing of Bill of Entry before the arrival of goods at Customs Station


• Confiscation of goods on a wrongful claim of refund/remission


• Penalty up to 5 times for utilization of ITC on fake invoices


• Common Custom Portal to provide a one-point digital interface

Additional Infrastructure and Development Cess

• Levy and calculation of AIDC on goods imported into India


• Applicability of Customs Act on imported goods leviable to AIDC


• List of specified imported goods and rate of AIDC


• AIDC on Production/Manufacturing of HSD and Petrol

Amendments under the Central Sales Tax Act

• Benefit of concessional CST Rate would not be available in certain cases

Amendments under the Customs Tariff Act

• Levy of Countervailing Duty in case of Absorption of CVD


• Aligning Customs Tariff Act, 1975 with the HSN 2022


• Tariff Rate Changes for Basic Customs Duty (to be effective from 02.02.2021)


• Tariff Rate Changes for Basic Customs Duty through Notifications (to be effective from 02.02.2021)


• Pruning and review of customs duty concessions/exemptions


• Extending IGCR Rules for specified transactions


• Changes pertaining to Anti-Dumping Duty (ADD)/Countervailing Duty (CVD)/Safeguard Measures


• Other Miscellaneous Changes

Amendments Proposed under the Corporate Laws

• Amendment to the Indian Stamp Act, 1899


• Amendment to the ‘Contingencies fund of India’


• Amendments to the Securities Contracts (Regulation) Act, 1956


• Amendment to the Securities and Exchange Board of India Act, 1992


• Amendments to the Life Insurance Corporation Act, 1956


• Amendment to the SARFAESI Act, 2002


• Amendment to the Recovery of Debts Due to Banks and Financial Institutions Act, 1993