Budget has come as a relief as Government didn’t impose any form of COVID Tax
this year and nor there were any upward revision in tax rates. People were
hoping for some additional tax breaks on account of medical expenses but no such
announcements on that.

Faceless Assessments is the new buzz word and now tax tribunals have been bought
into it. It needs to be seen how crucial aspects of international tax would be
dealt with by the tribunals however this could lead to increase in litigation
cases in future if tax officials are not trained properly. Only in serious fraud
cases, reopening will be possible after 10 years, where concealment of income is
more than Rs.50 Lakhs, hence resolving uncertainty.

Limits for Tax Audit has been increased upto Rs.10 Crores, thus shutting doors
for compliance and transparency.

Startups have been given tax holiday and capital gains exemption for one more
year, which they can hardly utilise, as they are in loss making stage. Its like
providing an umbrella where there is no rain.

Earlier Interest earned while making contribution to the employee provident fund
were not taxable if it’s withdrawn at the time of termination after completing
five years. Now the same will be taxable if the Contribution to Fund exceeds

The big hurrah is that, senior citizens who get only pension and interest income
are not required to file ITR from now onwards. Around 7% population is over 65
years. Out of this, Population above 75 years is less than 7%.

Question arises why are persons, who are 70 years or so not eligible for the
benefits? According to the law, a senior citizen is an individual resident
between the age group of 60 to 80 years. A super senior citizen is an individual
resident who is above 80 years.

The new section is advantageous for government retired pensioners. Private
retirees are left out. The pension income and interest must come from same bank,
the section says. This would inconvenience pensioners.

Budget seemed growth focussed quite a few big announcements have been made,
however success of the same will depend on effective implementation.


Suyash Tripathi.

Chartered Accountant

Originally posted by Suyash Tripathi on Facebook
link: facebook.com/groups/1628088717410164/user/100002887587895/