• A new optional tax regime has been proposed where income is taxable at reduced rates without the benefit of any deduction and exemption
  • It is proposed that DDT shall be abolished and shareholders shall be liable to pay tax on dividend income.
  • Exemption available under Sec 10(45) to UPSC Chairman and members and Chief Election Commissioner and Election Commissioners has been proposed to be removed
  • Threshold limit for tax audit is proposed to be increased from Rs. 1 crore to Rs. 5 crore provided cash receipt or payment does not exceed 5% of total receipt or payment, as the case may be.
  • Due date for filing of return by the persons who are liable for tax audit has been proposed to extend from September 30 to October 31 of Assessment Year.
  • If the land or building is purchased before 01-4-2001, the fair market value of such property can’t exceed the stamp duty value of the property as on 01-04-2001
  • To curb the practice of obtaining fake GST invoices, a new penalty of an amount equal to the aggregate amount of fake GST invoices has been proposed
  • E-appeal & e-penalty schemes to be launched on the lines of e-assessment scheme.
  • The period of sanctioning of loan by the financial institution under section 80EEA is proposed to be extended by 1 year
  • Safe harbour limit available under section 43CA, 50C and 56 has been proposed to increase from 5% to 10%
  • Concessional Corporate tax rate of 15% is proposed to be allowed to new domestic companies engaged in the generation of electricity
  • The period of approval of the project by the competent authority under section 80-IBA is proposed to be extended to 31-03-2021.
  • Domestic company or mutual funds shall not be required to pay any distribution tax
  • A new section 115BAD has been inserted to provide an option to the co-operative societies to pay tax at the rate of 22% plus 10% surcharge and 4% cess
  • Cos opting for the concessional rates shall not be allowed a deduction under any provisions of Chapter VI-A other than section 80JJAA or section 80M.
  • Business Trusts will not be required to get listed on a recognised stock exchange for availing the benefit of pass-through allowed under section 115UA.
  • Assessees can seek advance pricing agreement (APA) or SHR in respect of the determination of attribution of profits to PE.
  • A co-operative society having gross receipts or turnover exceeding Rs.50 crore in the previous financial year are also required to deduct tax from interest if it exceeds Rs. 50,000 in case of a senior citizen and Rs. 40,000 in other cases
  • E-commerce operator shall deduct tax at the rate of 1% from sale done by the participant thought their platforms.
  • The scope of TCS extended to overseas remittance, sale of overseas tour package and sale of goods.
  • Section 80-IAC has been proposed to be amended to provide that deduction to an eligible start-up shall be available for a period of 3 consecutive assessment years out of 10 years
  • Further, the turnover limit for claiming such exemption has been raised to Rs. 100 crore which was earlier Rs. 25 crore.
  • TDS or tax payment in respect of income pertaining to Employee Stock Option Plan (ESOP) of start- ups has been proposed to be deferred
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  • Section 80-IAC has been proposed to be amended to provide that deduction to an eligible start-up shall be available for a period of 3 consecutive assessment years out of 10 years
  • Further, the turnover limit for claiming such exemption has been raised to Rs. 100 crore which was earlier Rs. 25 crore.
  • TDS or tax payment in respect of income pertaining to Employee Stock Option Plan (ESOP) of start- ups has been proposed to be deferred